Retail

Sales Return Provision — End of Period

Estimating and provisioning for returns expected in the next period on current-period sales.

Account NameTypeDebit ($)Credit ($)
Sales Returns & Allowances (Estimated)Contra-Revenue (+)3,500.00-
Allowance for Sales ReturnsContra-Asset (+)-3,500.00

💡 Accountant's Note

Under IFRS 15, variable consideration (expected returns) must be estimated and deducted from revenue. For high-return categories (fashion, electronics), this is material and auditor-scrutinized.

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