In a firm that uses special journals, the return of damaged merchandise to a supplier and receipt of a credit memorandum is recorded in the:
A)cash receipts journal.
B)purchases journal.
C)general journal.
D)cash payments journal.

Question

Quizplus · Accepted Answer

The return of damaged merchandise to a supplier and receipt of a credit memorandum is recorded in the general journal. This is because such transactions do not fit neatly into the more specialized journals like those for cash receipts, purchases, or cash payments. The general journal is used for recording unique or infrequent transactions.

In a Firm That Uses Special Journals, the Return of Damaged