LO 7.2 An unhappy customer just returned $50 of the items he purchased yesterday when he charged the goods to the company’s store credit card. Which special journal would the company use to record this transaction?Choose one answer from the options below.A. sales journalB. purchases journalC. cash receipts journalD. cash disbursements journalE. general journal
Question
LO 7.2 An unhappy customer just returned $50 of the items he purchased yesterday when he charged the goods to the company’s store credit card. Which special journal would the company use to record this transaction?Choose one answer from the options below.A. sales journalB. purchases journalC. cash receipts journalD. cash disbursements journalE. general journal
Solution
The correct answer is E. General Journal.
Here's why:
The General Journal is used to record any transaction that doesn't specifically belong in any other special journals. In this case, the customer is returning items that were previously purchased, which is not a sale, purchase, cash receipt, or cash disbursement. Therefore, it would be recorded in the General Journal.
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