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ACCA Applied Knowledge · Financial Accounting · Double-entry bookkeeping principles including the maintenance of accounting records

Which of the following transactions would be recorded first in the sales returns day book?

A credit note issued to a customer who returns goods bought on credit is first recorded in the sales returns day book. Supplier returns go in the purchases returns day book, cash refunds in the cash book, and bad debt write-offs in the journal.

  1. AA customer returns goods that were originally sold on credit and a credit note is issuedCorrect
  2. BA supplier accepts the return of goods bought on credit
  3. CA customer returns goods that were paid for in cash at the till
  4. DThe business writes off an irrecoverable debt

Explanation

The sales returns day book records credit notes issued to credit customers for goods returned. Returns of purchases belong in the purchases returns day book, cash refunds go through the cash book, and bad debts are recorded in the journal.

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