In a firm that uses special journals, the receipt of a credit memorandum from a supplier for merchandise that was damaged but can be sold at a reduced price is recorded in the:
A)general journal.
B)cash receipts journal.
C)cash payments journal.
D)purchases journal.

Question

Quizplus · Accepted Answer

The receipt of a credit memorandum from a supplier for damaged merchandise that can still be sold at a reduced price is an unusual transaction that doesn't fit neatly into the specialized journals designed for routine transactions. Therefore, it is recorded in the general journal, where non-routine and adjustment entries are made.

In a Firm That Uses Special Journals, the Receipt of a Credit