Retail
Customer Return — Exchange for Different Item
Customer exchanges a returned item for a different product of the same value.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Sales Returns & Allowances (Item A) | Contra-Revenue (+) | 100.00 | - |
| Merchandise Inventory (Item A Restocked) | Asset (+) | 55.00 | - |
| Cost of Goods Sold — Item A (Reversal) | Expense (-) | - | 55.00 |
| Sales Revenue (Item B) | Revenue (+) | - | 100.00 |
| Cost of Goods Sold — Item B | Expense (+) | 60.00 | - |
| Merchandise Inventory (Item B) | Asset (-) | - | 60.00 |
💡 Accountant's Note
An exchange is two transactions: a return of the original item and a new sale of the replacement. No cash changes hands if the values are equal.
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