Hello,
I'm new to accounting so apologies for what must be a very elementary question...
If my business returns some damaged goods which it hasn't yet paid for, how is this recorded in my books (if at all)?
Thank you Regards
Tom
"tj" wrote
Remember that the only correct answer is......it depends.
If you've already booked the receipt of the goods into inventory and recorded the payable, which is often the case, then un-do that entry for the portion being returned - although you need an off-the-books method to be sure they receive the goods and give you credit on your account. Your software might be able to create some kind of memo entry to AP that would record the returned goods, and that item would be a reconciling item when you go to reconcile your payables.
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