Where do you record return inwards journal?

Return inwards, also known as sales returns, are recorded in a separate journal called the "Returns Inwards Journal." This journal captures the details of goods returned by customers, including the date of return, customer name, item description, quantity, and reason for return. The total value of the returns is then transferred to the general ledger, typically reducing sales revenue in the sales account. This helps businesses keep accurate track of their sales and inventory levels.