Chapter 4: Preparing financial statements Flashcards
1
Q
What is a sales return?
A
Return from customers. (Return inward)
2
Q
What is a purchase return?
A
Returns to suppliers. (Return outwards)
3
Q
What are the double entries for a sales return?
A
Dr sales
Cr cash/ Trade receivables
4
Q
What are the double entries for a purchase return?
A
Dr cash/ Trade payables
Cr Purchases
5
Q
What are the 2 types of discounts?
A
1) Trade (bulk buy)
2) Early settlement- Prompt payments
6
Q
A
