merchandise returns and allowances by Peter Melkonian

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Slide Notes

merchandise returns and allowances

Published on Dec 06, 2015

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PRESENTATION OUTLINE

merchandise returns and allowances

Mr. Melkonian

Photo by kevin dooley

when a sale is made on account

seller issues a sales invoice and makes an acocunting entry

sometimes it gets cancelled however

possibly defective-result?

credit invoice

'minus' invoice-reverses the charge

Credit invoices provided if

defective product
less than satisfactory product
error is made on invoice - error is corrected in this case

corrected in books of purchaser and seller

cash refunds

no invoices involved-cash or cheque issued

returns and allowances accounts

specific account used-easier for documenting larger scale business

Peter Melkonian