Return of goods by a customer should be debited to ........

Accountancy (Phase -I & II) Accounting cycles

Return of goods by a customer should be debited to ___________

Customers account

Sales return account

Goods account

Purchase account

- Understanding the Journal Entry for Sales Returns:

- When goods are returned by a customer, it affects sales revenue.

- The appropriate account to reflect this decrease in sales is the Sales Return account.

- Option Analysis:

- Option 1 - Customer's account: Typically reflects amounts owed by/to customers, not returns.

- Option 2 - Sales return account: Correct account to debit as it directly offsets sales when goods are returned.

- Option 3 - Goods account: Not usually a standard account in financial entries for sales returns.

- Option 4 - Purchase account: Related to buying goods, not selling or returns.

- The correct answer is Sales return account from Option 2.

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