What are Sales Returns
When goods sold to our customer ( Accounts Receivable ) but the customer finds that some goods are damaged or lower quality or not according to the order specified then he writes a Debit N ote to seller requesting him to replace the goods. If the seller accepts the offer, then he sends a Credit N ote to buyer intimating him that he has accepted his request and will replace the goods. The following Entry is passed by the Accountant appointed at Accounting Department after receiving a copy of Credit N ote from seller: Sales Returns a/c XXX ...