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Insert Calculations in the Credit Memo

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Aug 6th, 2022

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How to Insert Calculations in the Credit Memo

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all right so Ive in the previous video Ive done these first three transactions and weve got three more to go so the first one June 5 June of Elvis merchandise issues a credit Memorandum of $40 to Jackson company for damaged merchandise something happened maybe Jane probably had the best of intentions but something was wrong with the merchandise sold to Jackson company so Jims going to issue him a credit memorandum now if this were a cash transaction Jim would just give him cash back but since this is an accounts receivable transaction uh Jim is going to do something different hes gonna give him whats called a credit memorandum and well see why he calls it that very shortly here first of all right now ing to our T accounts remember this is from transaction let me see your transaction B where this is the amount that Jim owes us however now he doesnt owe us that money were gonna say you know you dont owe you this some of that was damaged you dont owe us 40 bucks so now I need t

Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

What are the accounting entries in a credit memo?

Accounting for Credit Memos In a sellers double-entry accounting system, a credit memo is recorded as a debit under the appropriate Revenue account and a credit under Accounts Receivable, which is the exact opposite of the original sales entry as the memo reduces the balance that the seller is now owed by the buyer.

What should be included in a credit memo?

Credit memo format Credit Invoice in a prominent place at the top of the invoice. Company information. Customer information. Date issued. Credit memo number. Original invoice number. Description of goods (e.g., quantity and price) Total amount credited.

How do I enter a credit memo in Quickbooks?

Heres how to create a credit memo in QBO: Click the Plus (+) icon and select Credit Memo. Choose the customer name. Enter the Credit Memo Date. Fill in the necessary information. Click Save and close.

How do you calculate credit memorandum?

Calculations for credit memo: Credit amount (with tax) = 20.33*(1+0.23) = 25.0059. Credit amount (with tax) (rounded) = 25.01. Memo tax amount = 25.01-20.33 = 4.68.

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