Accounting.?
‘A guest became ill and was unable to stay for the entire week, a refund was issued for $1000’…
Anyways I can’t seem to figure this out, where would the debit and credit go?
I’m not listing all of them, only the ones that could possibly matter…
Assets
-Cash, accounts receivable
Liablilities
-accounts payable
Owner’s Equity
-Capital, drawing
Revenues
-Registration fees
If you can help me with that question it’d be great. Thanks…
Favorite Answer
The debit depends on the company. It would either be a contra account for the Revenue account, or you can just directly debit the Revenue account. The $1000 was originally put in there, but now it is no longer revenue, so you need to reduce that account.
-Sales R/A is Debited
If you are in a beginning acct. class you might not use this but anything above beg. wil use Sales Return and Allowances.
