Greetings, what entries would i make for the following transaction; Company X has a year end date of 31/12/2022. Sales worth $80,000 are made in November 2022 to customer Y. Following a defect in these products, Company Y returns the goods worth $80,000 on 2/02/2023 to company X. These goods cannot be sold neither improvements made to them hence must be written off. What accounting treatment should be done for the above?
If you show me how you’ve attempted the question then I can help. What do you think the treatment should be? If you let me know then I’ll gladly help you with the answer.