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Chapter 9
Accounting Information Systems
Suppose Furniture Retailers, a customer from Figure 9.6, returned some items worth $300 that
cost $170 on January 18. The general journal entry is entered as shown in Figure 9.22. The PR
for accounts receivable updates the general ledger (shown by the account number 110) and the
subsidiary ledger for the customer (shown by the check mark).
Journal
Page 1
Date
2016
account title and explanation Pr Debit
credit
Jan 18 Sales returns & Allowances
410
300
Accounts receivable
110/
300
Customer returned items
Inventory
120
170
Cost of goods Sold
500
170
Returned Items to supplier
fIgure 9.22
Also, suppose the company returned $500 of the inventory it purchased from Antonio’s Electric on
January 10 (from Figure 9.14).This purchase return is completed in the general journal, as shown
below.The PR for accounts payable updates the general ledger (shown by the account number 200)
and the subsidiary ledger for the supplier (shown by the check mark).
Journal
Page 1
Date
2016
account title and explanation Pr Debit
credit
Jan 10 Accounts Payable
200/
500
Inventory
120
500
Returned Items to supplier
fIgure 9.23
