Use the following information to answer this question
Bayo issued a credit note to Ayo who returned defective goods. Each party maintains sales ledger control account and purchases ledger control account.
Bayo will record this transaction on the
debit side of the sales lodger control account.
credit side of the sales ledger control account.
debit side of the purchases ledger control account.
credit side of the purchases ledger control account.
Explanation
Video Explanation
No video available
Post your Contribution
Discussions (1)
A. debit side of the sales ledger control account
Why?
Bayo is the seller.
He issued a credit note because goods were returned.
This reduces the amount owed by the customer (Ayo).
The Sales Ledger Control Account represents debtors/customers.
When a customer returns goods:
the customer’s debt decreases,
so the seller records it on the debit side of the Sales Ledger Control Account.
