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4 answers

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 · answer #1 · answered by Sandy 7 · 0 0

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 · answer #2 · answered by misslocke 2 · 0 0

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 · answer #3 · answered by tscgmc 2 · 0 0

Debit sales, credit debtors (if still outstanding) or creditors otherwise

2007-06-28 17:43:12 · answer #4 · answered by jwm_111999 1 · 0 0

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