Journal Entry for Credit Sales Return

Journal Entry for Credit Sales Return

Journal entry for credit sales return may be recorded by debiting the sales return being decrease in sales income and crediting the receivable being decrease in asset.

Date	Particular	Ledger Folio	Dr.	Cr.
03-03-2012	Sales Return		xxx
03-03-2012	Receivables			xxx

There is another method of recording the sales return in the books of account. In this method sales return are directly debited to the sales account and receivable account is credited. This is a reversal entry of sale.

Date	Particular	Ledger Folio	Dr.	Cr.
01-04-2014	Sales		xxx
01-04-2014	Receivable			xxx

Example Journal Entry for Credit Sales Return

Credit sales made to a reputable customer amounting 60,000. The customer returned the items purchase could not qualify the quality test. The following transactions shall be recorded in the books of accounts.

In first place the normal sales entry shall be recorded at the time of sales. The receivable account would be debited and sales would be credited. In second transactions we would record the sales return transaction by debiting the sales return and crediting the individual account. These both transactions are shown below

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Receivable		xxx
01-01-2017	Sales			xxx

Date	Particular	Ledger Folio	Dr.	Cr.
01-03-2017	Sales Return		xxx
01-03-2017	Receivable			xxx