A Debit To Sales Returns And Allowances And A Credit To Accounts Receivable
The Effects Of Sales Returns And Sales Allowances On Accounts Receivable (Sundry Debtors) A debit to Sales Returns And Allowances and a credit to Accounts Receivable (Sundry Debtors) shows either the customers returned the goods / merchandise or received an allowance on merchandise sold to them by corporation / company. The entry to record is shown below: Sales Returns And Allowances a/c XXX Accounts Receivable a/c XXX (Merchandise Returned By Customers Or An Allowances Received By Customers) The customers may return the goods / merchandise due to damages, unsatisfactory conditions or wrong delivery of goods or merchandise.