If a buyer is given an allowance for damaged merchandise, an entry is required in the general journal.

Question

Quizplus · Accepted Answer

An entry is required in the general journal to record the allowance for damaged merchandise given to the buyer. This entry will include a debit to the allowance for damaged merchandise account and a credit to accounts receivable or cash account depending on whether the buyer has paid for the damaged merchandise or not.

If a Buyer Is Given an Allowance for Damaged Merchandise