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    xxtislyssxx's Avatar
    xxtislyssxx Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 10, 2007, 07:00 AM
    Receiving credit for damaged merchandise return
    I understood how to record an issuing of a credit to an accounts receivable, but now I'm confused on how to record a received credit for damaged merchandise.

    The transaction is:
    Received credit for damaged merchandise return to Maybee Plumbing, invoice #127. This is the merchandise that was returned to us from Lotus City Limited on 10/3.

    How do I record this transaction?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Apr 10, 2007, 08:16 PM
    So we returned merchandise.

    Dr. AR/Credit with Maybee Plumbing
    Cr. Purchase Returns and Allowances.
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