Goods returned are typically credited to the inventory account, reducing the inventory balance. Simultaneously, the corresponding Accounts Payable or sales returns account is debited, reflecting the decrease in expenses or revenues. This accounting treatment ensures that both the inventory and financial statements accurately reflect the return transaction.
debited
Commission received is credited and cash is debited
In a perpetual inventory system, when merchandise is returned to the supplier, the cost of merchandise sold is not debited; instead, the inventory account is credited to reflect the return of the goods. The transaction typically involves debiting the accounts payable or cash account, depending on whether the return is for credit or a refund. This adjustment ensures that the inventory balance remains accurate and reflects the actual amount of goods on hand.
credited
All liabilities are credited and assets are debited so increase in liability will be credited and not debited.
debited
Commission received is credited and cash is debited
credited
credited
credit
All liabilities are credited and assets are debited so increase in liability will be credited and not debited.
The Cash account will be credited.
Credit
In accounting, transactions are debited or credited based on the accounting equation, which states that assets must equal liabilities plus equity. When a transaction increases assets or expenses, it is debited. When a transaction increases liabilities, equity, or revenue, it is credited.
Revenue is income or a credit.
In accounting, when a transaction occurs, one or more accounts are debited while others are credited to maintain the accounting equation. Typically, assets and expenses are debited, while liabilities, equity, and revenue are credited. For example, if a company purchases inventory with cash, the Inventory account (asset) is debited, and the Cash account (asset) is credited. This ensures that the total debits equal total credits, preserving the balance in the accounting records.
When a seller records a return of goods, the account that is credited is typically "Sales Returns and Allowances." This account is a contra-revenue account that reduces the total sales revenue reported on the income statement. Additionally, the inventory account may be debited to reflect the return of goods to stock.