What is the journal entry to record a sales return?
When a customer buys an item and the company recognizes revenue, the debit would be to cash (or accounts receivable) and the credit is to net sales. When a customer returns the item, then we just need to reverse or neutralize the revenue transaction (like it never occurred). Therefore, we would debit net sales and credit cash.
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What is the journal entry to record revenue from the sale of a product or service to customers?
Assuming that the revenue can be recognized under U.S GAAP, then the there are two main types of journal entries that would be recorded. If the customer pays with cash, then the company would debit cash and credit net sales. If the customer pays on credit, then the company would debit accounts receivable and credit […]
Does a debit or credit increase revenue?
To record revenue from the sale from goods or services, you would credit the revenue account. A credit to revenue increases the account, while a debit would decrease the account.