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    AshleySand's Avatar
    AshleySand Posts: 2, Reputation: 1
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    #1

    May 5, 2015, 05:45 PM
    Sales returns and allowances is credited for the selling price, including sales tax,
    Sales returns and allowances is credited for the selling price, including sales tax, of any merchandise returned by customers?
    smoothy's Avatar
    smoothy Posts: 25,492, Reputation: 2853
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    #2

    May 5, 2015, 05:49 PM
    That homework and we don't do your assignments for you. Give us what you thing the answer is and why. And we will give you our opinion and guidance.
    AshleySand's Avatar
    AshleySand Posts: 2, Reputation: 1
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    #3

    May 5, 2015, 05:52 PM
    Its not homework. I was asking a question because I didn't know it..
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #4

    May 6, 2015, 11:16 AM
    The answer is yes, also you will have to increase your merchandise inventory for the cost of the merchandise (purchase price paid by the company) and decrease your cost of goods sold accounts for the same amount if the merchandise can be resold. Otherwise you will have to transfer the amount of what the company paid to purchase the items to whatever account you use for damaged merchandise.

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