December 26 *Received all the goods that Waren authorized Eastern Wisonsin Unive

Question

December 26 *Received all the goods that Waren authorized Eastern Wisonsin University to return on EWU's return request No. R8034 for credit against their account balance. **Process and record the sales return now. December 26 * Receive check No. 49326 for $10,000 for Eastern Wisconsin University in partial payment of the remaining amount (after sales return) on charge invoice No. 729, and deposited the check. **Do not finalize a deposit slip until you determine whether there are no other cash receipts on the same day. After entering the partial payment for invoice #729 with check 49326, where else am I suppose to post to? With the check from EWU, would you post this in the Cash Disburstments Journal?

Explanation / Answer

When the goods have been returned then this is sales return and when the check has been received as partial payment then it is recorded in cash receipt journal and not in cash Disbursements Journal. In cash disbursement journal we record transactions related to payments made whereas in cash Receipt Journal we record the transactions for which the money has been received.

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