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A debit on sales, while crediting cash means a cash refund to a customer.
A sales transactionFor a service provider, the journal entry for a cash sales transaction has a debit on cash, and a credit on sales. Assuming a sales price of $100:
cash 100 (debit)
sales 100 (credit)
A refundIf for whatever reason the customer requests (and receives) a (partial) refund, sales is reduced. The journal entry of a $30 refund would be the reverse of the above:sales 30 (debit)
cash 30 (credit)
Alternative journal entry
However, companies would normally like to keep track of the amount of refunds. Instead of using 'sales' with a refund, a different T-account is used:
sales allowances 30 (debit)
cash 30 (credit)
Sales allowances is a contra-T account to sales, and presented jointly in the income statement (sales minus sales allowances is net sales).
For a trading company, there can also be sales returns (physical return of the goods), or a T-account 'sales returns and allowances'
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What is the journal entry for a cash sell?
Debit Cash Credit Sales
The effects on the basic accounting equation of performing services for cash are to?
Debit Cash Received Credit Income/Sales
How do you account cash sales return?
[Debit] Sales return [Credit] Cash /bank [Debit] Sales [Credit] Sales return
Why is cash a credit in accounting?
Cash is "not" a credit in accounting. The cash account is an asset and is a debit balance account. To increase the cash account you debit the account and to decrease it you credit it.Cash = Current Asset = Debit Balance(GAAP)
What is the journal entry for purchase on credit and sales on cash?
Debit: Purchases Credit: Accounts Payable Debit: Cash Credit: Sales
Accounting journal entry for sales promotion?
[Debit] Sales Promotion expenses xxxx [Credit] Cash / bank / goods etc xxxx
What is the journal entry for sold goods for cash?
Debit cash / bankCredit sales revenue
Cash sales of 2600 was credited into the bank?
[Debit] cash 2600 Credit sales 2600 Deposited to bank Debit Bank 2600 Credit Cash 2600
Journal entry for good sold and check received?
Cash (debit)Income or Revenue (credit)A check is considered cash in accounting and is recorded as such as it is easily converted to cash (or deposited)
What is the double entry for sale?
Cash/Bank/Accounts Receivable [Debit] Sales[Credit]
What are the accounting journal entries for theft of cash?
[Debit] Theft Cash [Credit] Cash
Is cash in the bank debit or credit?
Cash you have deposited into a bank is credit Money to be paid back later is debit
