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Hallo,
May I ask, is it possible to do it in two ways:
A) Sales returns (returns inwards), to either:
1. Dr Sales
Cr Sales Returnsor
2. Dr Sales Returns
Cr A/R– or only 1, or only 2, or both are possible, although in the two ways, once the Sales returns is credited and in the second way it is debited, which doesn’t seem to be correct, or?
B) Purchase returns (returns outwards)
1. Dr Purchase returns
Cr Purchasesor
2. Dr A/P
Cr Purchase returns– or only 1, or only 2, or both are possible, although in the two ways, once the Purchase returns is debited and in the second way it is credited, which doesn’t seem to be correct, or?
Thank you!
The correct entry for sale returns is:
Dr Sales returns
Cr Account receivables(although instead of debiting sales returns it is OK to debit sales instead)
The correct entry for purchases returns is:
Dr Account payable
Cr Purchase returns(although instead of crediting purchase returns, it is OK to credit purchases instead)
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