Question

Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000. Two days later Doughton returned $2,000 of the merchandise due to damage. When Doughton pays for the merchandise minus the return, it would record the payment in the:A. Cash receipts journal.B. Cash disbursements journal.C. Purchases journal.D. Accounts Payable controlling account.E. General journal.

Answer 1

Answer:

E) General journal

Explanation:

The general journal is used to record all the accounting transactions carried out by a company. If the company uses an accounting tool software or a more complete ERP software, the transaction should be recorded immediately or as soon as possible.

For example, the journal record for this transaction should be:

• Dr Accounts Payable account 6,000
• Cr Cash account 6,000