aug 5 tammy sportswear received a $10,000 sales return on damaged goods from the customer. cost of goods…
aug 5 tammy sportswear received a $10,000 sales return on damaged goods from the customer. cost of goods damaged is $5,000. start by preparing the entry to record the sales return. do not record the cost of inventory returned with this entry. we will do that in the following step. date accounts debit credit aug 5
Answer
Explanation:
Step1: Identify the accounts affected
When there is a sales return, the Sales Returns and Allowances account is debited (it is a contra - revenue account) and the Accounts Receivable (assuming the sale was on credit) or Cash (if it was a cash sale) is credited. Debit: Sales Returns and Allowances $10,000 Credit: Accounts Receivable (or Cash) $10,000
Answer:
| Date | Accounts | Debit | Credit |
|---|---|---|---|
| Aug 5 | Sales Returns and Allowances | $10,000 | |
| Aug 5 | Accounts Receivable (or Cash) | $10,000 |