The entry to record the return of merchandise from a customer would include a | |||||||||
Debit to Sales Returns | |||||||||
and | |||||||||
Credit to Accounts Receivable | |||||||||
(Assuming sales was made on account. If sales was for Cash, the accounts receivable will be replaced with cash) | |||||||||
Example- Merchandise Return of $ 1000 | |||||||||
Account titles and explanations | Debit | Credit | |||||||
Sales Returns | $ 1,000 | ||||||||
Accounts Receivable | $ 1,000 | ||||||||
(To record merchandise returned from customer) | |||||||||
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