Refund for Tyre Claim

Hello,

My company is a car workshop. A customer has claimed one piece of tyre for claim and I have refunded 80% of the money to the customer. The credit note I issued to the customer should be the full amount as previous invoice or the 80% of the money I refunded? Also, the accounting entries should be as the following or otherwise?

Dr. Sales Return
Cr. Sales

Dr. ?
Cr. Cash

Asked on June 7, 2018 2018-06-07 00:23:02 Business (商家)
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1 Answer(s)

You should issue a credit note for the 80% you refund back to your customer.  The accounting double entry should be :
DR. Sales
CR. Cash / Bank

Answered on June 7, 2018. 2018-06-07 03:39:53
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