• Business Accounting and Bookkeeping
  • Mathematical Finance
  • Financial Statements

If a consumer returns a purchase from a retailer do you take that return from the gross sale or net sales?

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βˆ™ 2015-07-15 19:41:40

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The most appropriate way to account for a return is to have a 'returns account' (or negative sale if you will) to permit the retailer to see what percent of its sales are actually returned. Inventory should be credited accordingly, and the 'COGS' Cost of Goods Sold Account should also be reduced.

2015-07-15 19:41:40
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Related Questions

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