[valeria66]

A credit memorandum for $156 ( sales price of merchandise was $150; sales tax was $6) was issued to a customer for goods returned that had been purchased on account. To enter this transaction properly, for how much the Account Receivable wuold be credited?
Thank you

[morgaine300]

The receivable is the entire $156. That's how much was in there that the customer owed, $150 for merchandise and $6 for taxes. Since they no longer owe any of it (they won't owe the tax if they return it), then all $156 gets taken out.

Then the $6 also needs removed from the Sales Tax Payable, and the $150 should go into the Returns accounts.

[valeria66]

You are an agel. Thnk you very much. I will go to Support this Member and donate for you. Thank you