E-commerce
Customer Return — Product Restocked
Processing a return where the product is in perfect condition and goes back into inventory.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Sales Returns & Allowances | Contra-Revenue (+) | 99.00 | - |
| Cash / Bank (Refund) | Asset (-) | - | 99.00 |
| Merchandise Inventory | Asset (+) | 45.00 | - |
| Cost of Goods Sold (Reversal) | Expense (-) | - | 45.00 |
💡 Accountant's Note
A clean return reverses both the revenue and the COGS. The product re-enters inventory at its original cost. Using Sales Returns (not a direct debit to Revenue) allows tracking of return volume as a KPI.
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