Where would you record a received credit memo from a creditor?

Recording a received credit memo from a creditor typically occurs in the general journal. This is because a credit memo represents an adjustment to previous transactions, such as a returned item or an overpayment, and it affects accounts that may not fall into the typical categories of sales or purchases specifically.

When you receive a credit memo, it usually indicates a reduction in the amount you owe to a supplier or vendor, suggesting a decrease in liabilities. This can be recorded in the general journal as it gives a comprehensive view of all financial transactions, including adjustments and corrections.

Utilizing the general journal allows for accurate tracking of these adjustments in a consolidated manner, separate from the direct accounts for sales or purchases, which are used for recording revenue and inventory purchases respectively. Recording in the general category provides better clarity and helps in maintaining an organized financial record.