E-commerce

COD Return — Order Rejected at Door

Recording a COD order that was returned because the customer refused delivery.

Account NameTypeDebit ($)Credit ($)
Sales Returns & AllowancesContra-Revenue (+)150.00-
Receivable: Courier (COD)Asset (-)-150.00
Merchandise InventoryAsset (+)60.00-
Cost of Goods Sold (Reversal)Expense (-)-60.00

💡 Accountant's Note

If a COD customer refuses the parcel, the courier returns it. Revenue and COGS are both reversed and inventory is restocked. The courier receivable that was set up at dispatch is also cleared.

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