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Could you explain deeply for me about the refund to customer or refund received from supplier?
Besides, I also want you to give me examples to back up this.Thanks
A refund is simply a repayment of cash.
For example, maybe a customer paid us too much by mistake.
So, we repay the amount that they overpaid – this is a refund!Maybe a customer returned goods to us because they were faulty. If he had already paid for the goods, then we give him the money back – this is a refund.
You should watch our lectures Refunds are explained in the lecture on Control Accounts.
So, for whatever transaction the refund always treats as the cash we received or paid for supplier/customer…by means in each transaction, Cash Account instantly appear and double entry with Receivable or Payable a/c..is this right?
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