How do you treat returns outwards?

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1093273

2026-03-04 06:55

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Returns outwards, also known as sales returns, occur when customers return goods to the seller. To treat returns outwards, you should first record the return in the sales returns account, which is a contra-revenue account that reduces total sales revenue. Then, adjust your inventory records to reflect the returned items and ensure that any relevant financial statements are updated accordingly. Finally, if applicable, process any refunds or credits to the customer.

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