Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration

4-9DQ

Expert-verified
Financial & Managerial Accounting
Found in: Page 205
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Does the sender (maker) of a debit memorandum record a debit or a credit in the recipient’s account? What entry (debit or credit) does the recipient record?

Yes, the sender (maker) records a debit in the recipient’s account. On the other hand, the recipient should record a Credit sender account.

See the step by step solution

Step by Step Solution

Definition of Debit Memorandum

A document issued by the buyer to the seller that reflects the debit made to the seller’s account is known as a debit memorandum. It reflects the refund of the amount or discount on purchases made.

Reporting debit memorandum

  1. Yes, the receipt account is debited by the sender because it reflects the reduction in the amount owed to the seller.
  2. Recipient credit the sender account because it reflects the reduction in the receivable amount.

Date

Accounts and Explanation

Debit $

Credit $

Sales return and allowance

Accounts receivable - Sender

Most popular questions for Business-studies Textbooks

Icon

Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.