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.