Accounting, need do know the journal entry for a customer return of item?
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Accounting, need do know the journal entry for a customer return of item?
Your Debits will be to inventory for the cost of the inventory and to Sales Revenue for the amount of sale price of the inventory. Your Credits will be to COGS for the cost of the inventory and Cash(if returning cash to customer) or to Accounts Receivable (if inventory was purchased on account) for the sale price of the inventory.
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