Sales Returns
Code: 4114
👁 Views: 108
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Value of goods returned by customers due to defects or errors. This account appears as a negative number (deduction) from gross sales.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IFRS 15
Revenue from Contracts with Customers
US GAAP
ASC 606
Revenue from Contracts with Customers
❓ Frequently Asked Questions
Q: How are sales returns recorded?
A: Dr. Sales Returns (contra-revenue), and Dr. Output VAT (if applicable), Cr. Customers or Cash.