For each of the transactions listed below, select the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal.
-Received an allowance for some merchandise that was slightly damaged but can be sold at a reduced price. Received a credit memorandum.
A)CR for cash receipts journal
B)CP for cash payments journal
C)S for sales journal
D)P for purchases journal
E)G for general journal.

Question

Quizplus · Accepted Answer

Receiving an allowance for damaged merchandise and a credit memorandum, where no immediate cash transaction occurs, is typically recorded in the general journal (G), as it is a non-routine transaction that doesn't fit into the specialized journals for cash receipts, cash payments, sales, or purchases.

For Each of the Transactions Listed Below, Select the Journal