Retail
Customer Return — Full Cash Refund
A customer returns an item within the return policy window and receives a full cash refund.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Sales Returns & Allowances | Contra-Revenue (+) | 100.00 | - |
| VAT Output Tax Payable (16%) | Liability (-) | 16.00 | - |
| Cash in Hand | Asset (-) | - | 116.00 |
| Merchandise Inventory | Asset (+) | 55.00 | - |
| Cost of Goods Sold (Reversal) | Expense (-) | - | 55.00 |
💡 Accountant's Note
A full return reverses both the revenue and the COGS, and the item is restocked. VAT is also reversed since no taxable supply ultimately occurred.
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Expert Analysis by Qusai Ahmad
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Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.