Retail
Customer Return — Store Credit Issued
Customer returns an item but chooses store credit instead of a cash refund.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Sales Returns & Allowances | Contra-Revenue (+) | 100.00 | - |
| VAT Output Tax Payable (16%) | Liability (-) | 16.00 | - |
| Store Credit Liability | Liability (+) | - | 116.00 |
| Merchandise Inventory | Asset (+) | 55.00 | - |
| Cost of Goods Sold (Reversal) | Expense (-) | - | 55.00 |
💡 Accountant's Note
Store credit is a liability — the store owes the customer merchandise. Revenue is reversed on the original sale, and the credit balance is tracked until the customer spends it.
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