Accounting for Sales Return: Journal Entries and Example
3. On Feb 5, journal entry to record the sales return and the buyer''s account adjustment. Dr Sales Return Allowance / Revenue (5*50) = $250. Dr Sales Return Allowance / Revenue (6*25) = $150. Cr Account Receivable (ABC Cosmetics) = $400. So we debit the Sales Return Allowance or the Revenues Account at USD250 plus USD150 and debit Account ...