Sales Return Journal Entry

When the goods sold to customers on credit basis, then sometimes it may happen that goods found damaged during transit, or goods are of defective material or not according to the order specified by the buyer, then in these cases, the buyer returns the goods to seller. It is a Sales Return for the seller as the goods sold to customers, now returned back to the seller destination.

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So, the seller record the following Sales Return Journal Entry in the Sales Returns Book as shown below:

                                      Sales Returns a/c    XXX

                                                                  Debtors / Accounts Receivable a/c   XXX

(Goods Returned Due To Damaged Done During Transit)