Where does Sales Return lies in Income Statement and Balance Sheet?

Answer 1

Assuming you made the sale on credit, when you made the sale, you'd:
Dr Accounts receivable xxx
Cr Sales xxx

When some of the goods were returned, you'd:
Dr Sales returns xxx
Cr A/cs receivable xxx

The sales returns are contra against the sales figure to arrive at net sales. Assume the sale was for $100 and the sales return $20, your net sale was $80.

Answer 2

Sales Returns Income Statement

Answer 3

Sales return is a contra-revenue account. In the income statement it is deducted from Sales revenue to arrive at net sales. It does not affect the balance sheet, other than indirectly. When you make a sale you debit cash or an account receivable. If the customer returns the item, you refund the cash or credit the receivable. Therefore the sales return affects cash or receivables indirectly, and these are permanent accounts reported in the balance sheet.

Answer 4

you can not take sales return in Balance Sheet its not Balance Sheet item ( head )& other thing is that If you are making Trading A/c you must minus(- ) it sale figur in Cr. Side. also its not for Profit & loss A/c item. Its use for only calculation for Gross Profit Amt.

Answer 5

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true -of particular accounting period of Balance sheet and trading & profit & loss account