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.
-Returned some damaged merchandise to a supplier and 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

Returning damaged merchandise to a supplier and receiving a credit memorandum is a transaction that doesn't fit neatly into the specialized journals designed for routine transactions involving cash, sales, or purchases. Therefore, it is recorded in the general journal, where non-routine transactions and adjustments are made.

For Each of the Transactions Listed Below, Select the Journal