Asked by Mikaela Forcum on Jun 07, 2024
Verified
A cash refund paid to a customer who overpaid an account receivable is recorded in the cash payments journal.
Cash Refund
An amount paid by the seller to the buyer for merchandise that is defective, is damaged during shipment, or does not meet the buyer’s expectations.
Cash Payments Journal
The special journal in which all cash payments are recorded.
Account Receivable
Money owed to a company by its debtors for goods or services that have been delivered or sold but not yet paid for.
- Recognize the contrasts between various transaction forms and the respective entries in their journals.
Verified Answer
AR
Andrea RomeroJun 09, 2024
Final Answer :
True
Explanation :
A cash refund to a customer who has overpaid an account receivable is recorded in the cash payments journal since it represents an outflow of cash from the company.
Learning Objectives
- Recognize the contrasts between various transaction forms and the respective entries in their journals.