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Receivables (FA)

TTobi2y ago
From my understanding of the receivables account, a debit increases the account while a credit reduces the account. My problem is I'm failing to understand the logic of debiting the receivables account when a returns in is made, as since the goods are being returned there should be a reduction in receivables. Thanks in advance
John MoffatJohn MoffatTutor2y ago#1
If a customer returns goods then we do not debit receivables - we credit receivables as I explain in my free lectures.
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