Question

Which journal would you record Credit note​

Answer 1

Answer:

• Sales Journal = For seller
• Purchases Journal = For buyer

Explanation:

A credit note is issued by a supplier to a purchaser when the purchaser returns goods back to the supplier. The note is essentially an acknowledgment that goods have been returned to the seller.

The seller would therefore record this in the Sales Journal to show that the sales has been reduced by the goods that were returned to them with the relevant entry being a debit.

The buyer would also record this in their purchases journal to show that their purchases have decreased and the relevant entry will be a credit.