Accounting for IGCSE & O level - Accounting Procedures (Section 18 - No. 47)
If a customer receives a refund for returned goods, how is this recorded in the sales ledger?
Debit customer account, credit cash.
Credit customer account, debit cash.
No entry in the customer account.
Debit sales returns, credit cash
Explanation
A refund reduces the amount owed, hence we credit the account.
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