Credit note accounting equation
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Credit note accounting equation

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    BabaJide Martins F.
    TR
    BabaJide Martins F.

    Well understood.

    Alice B.
    GQ
    Alice B.

    The actions taken by both buyers and sellers have effects on the accounting equation be it positive or negative.

    Morne V.
    ZA
    Morne V.

    Items that increase asset of the company is debited while those that decrease the assets are credited example liabilities

    Sunday O.
    NG
    Sunday O.

    Credit note accounting equation

    Odongo M.
    UG
    Odongo M.

    Accounting -> Credit note accounting equation Credit note accounting equation For the party returning the goods (Stewart) the effect on the accounting equation is: an decrease in the asset stock a decrease in the liability creditors For the party receiving the returned goods (Alex) the effect on the accounting equation is: an increase in the asset stock a decrease in the asset debtors These transactions may be recorded in the general journal in the manner stated above. Reasons for goods being returned include: the goods are damaged the goods are not in the quantity ordered the goods do not match the description the goods do not meet the quality required

    Manish K.
    NP
    Manish K.

    information is clear.

    Penelope M.
    US
    Penelope M.

    I have had that to happen, in reality, there is not a loss or a gain in such a case because the retailer is receiving it's product back, and not only do they receive their product back, they still sell it at the asking price from the beginning.

    Adil N.
    MA
    Adil N.

    What is a credit note accounting equation?

    Gloria N.
    AE
    Gloria N.

    ok

    Epie E.
    TH
    Epie E.

    obvious reasons for the returned goods;damage,sub-standard quality,void of description etc.effects in transactions will be an increase in asset stock and decrease in debtor for the reciever

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