Retail

Store Credit Balance Issued to Customer

Issuing a store credit note to a customer instead of a cash refund.

Account NameTypeDebit ($)Credit ($)
Sales Returns & AllowancesContra-Revenue (+)100.00-
VAT Output Tax Payable (16%)Liability (-)16.00-
Store Credit LiabilityLiability (+)-116.00

💡 Accountant's Note

A store credit is a liability — the store owes the customer merchandise or services. Revenue is reversed and the credit balance is held until the customer spends it.

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