E-commerce
Customer Refund (Cash/Bank)
Processing a full cash refund to a customer after they returned a product.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Sales Returns & Allowances | Contra-Revenue (+) | 100.00 | - |
| Cash in Bank | Asset (-) | - | 100.00 |
💡 Accountant's Note
Instead of debiting 'Sales' directly, we use 'Sales Returns' to track the volume of returns, which is a key performance indicator (KPI) for retailers.
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