Question

Journal entry for return damaged goods

Answer 1

Answer:

When merchandise is returned, the sales returns and allowances account is debited to reduce sales, and accounts receivable or cash is credited to refund cash or reduce what is owed by the customer. A second entry must also be made debiting inventory to put the returned items back.

Answer 2

Explanation:

Journal entries for returns of damaged goods to supplier

By debiting the Accounts Payable account the store reverses (i.e., decreases) its liability to Pottery Wholesaler. ... Note that Pottery Wiz's accountant can either credit Merchandise Inventory or Purchase Returns and Allowances.