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| Sales Return Journal Entry |
When a customer returns goods, you have to enter the sales return entry in your Book. sales return another name is credit note.
Journal Entry for Sales Return
Sales Return Account Debit
Accounts Receivable Account Credit
- The "Sales Returns" account is debited because of reduce the original sales revenue.
- The "Accounts Receivable" account is credited because of reduce the amount the customer owes if the original sale was made on credit.
This entry reflects the decrease in accounts receivable due to decreased sales and return the goods. If the original sale was made in cash, you would need to debit the "Cash" account instead of "Accounts Receivable."
