accounting/// which journal would be used if you returned merchandise that had been bought on account , sales journal, purchase journal, cash receipts journal, cash payments journal or general journal. i thought it would be on a general journal
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When returning merchandise that was bought on account, the appropriate journal to use is the "General Journal."
Here's how you can arrive at this answer:
1. Identify the transaction: The transaction is returning merchandise that was previously purchased on account. This means that the original purchase was recorded in the accounting system, and now we need to reverse that entry.
2. Understand the purpose of journals: Journals are used to record specific types of transactions based on their nature. For example:
- The Sales Journal is used to record sales made on account.
- The Purchase Journal is used to record purchases made on account.
- The Cash Receipts Journal is used to record cash received from customers.
- The Cash Payments Journal is used to record cash payments made.
3. Determine the appropriate journal: For returning merchandise bought on account, the General Journal should be used. The General Journal is a catch-all journal used to record transactions that do not fit into the specialized journals mentioned earlier.
In the General Journal, you would record the return of merchandise by debiting the Accounts Payable (to reduce the liability) and crediting the Inventory (to reduce the inventory asset). It is important to include a clear explanation of the transaction and reference the original purchase.
Remember, always consult your specific accounting guidelines or consult with a professional accountant to ensure the accuracy of your journal entries.