Cash Payment Journal

A journal that records all transactions involving the payment of cash regardless of the reason. Is used any time that there is an outlay of cash. Cash payments will automatically call for the use of this multicolumn special journal.

Purchases Returns and Allowances

A contra or negative account that offsets the merchandise purchases account. When goods previously purchased are returned, the entry for the return causes a credit to be recorded in this contra-account.

Purchases Returns and Allowances Journal

A journal used by the seller of goods to acknowledge the receipt of a credit memorandum from the seller authorizing the return of goods and the reduction or elimination of the buyer's obligation to the seller.