When you make a sale, you:
Dr Cash or A/cs receivable
Cr Sales
When the customer returns something, the entry depends on how your teacher taught you. Some still teach the very basic stuff, so you might be expected to:
Dr Sales returns and allowances
Cr Cash or A/cs receivable
The Sales returns a/c would be contra against the Sales a/c with the result that the Sales amount would be reduced, which is what you want. If your teacher never mentioned a Sales returns a/c, then you'd directly:
Dr Sales
Cr Cash or A/cs receivable
effectively reversing your first entry when you made the sale.
2007-06-28 15:14:41
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answer #1
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answered by Sandy 7
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On a Sales a/c it would be a Credit - So Sales Return a/c would be the opposite a Debit!
2007-06-28 16:10:30
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answer #2
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answered by misslocke 2
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In cash method you would debit sales and credit either Cash or A/R's. You may also have to adjust inventory account if you are tracking COGS, this is in accrual accounting.
2007-06-28 15:25:54
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answer #3
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answered by tscgmc 2
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Debit sales, credit debtors (if still outstanding) or creditors otherwise
2007-06-28 17:43:12
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answer #4
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answered by jwm_111999 1
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