Sales, Sales Returns and Allowances, and Payments of Accounts and Expenses

Sept. 26, 2016 — Sir Randy taught us how to record sales, sales returns and allowances, and payments of accounts and expenses. Right after our lecture, we made our second job sheet.

Sales, and sales Returns and Allowances are recorded the inverse of the purchases account since the business is the seller. If purchases is debited, then sales is credited. If purchases returns and allowances is credited, then sales returns and allowances is debited.

Recording payments of accounts and expenses is also the same as recording the expenses in service business.

Whoo! I really got confused with the interest income (the interest income received by the business from the customer) but after Sir Randy explained it, I now understand it. 😄

Here's my Job Sheet #2: