Sales returns is inclusive of refunds, credits, or special price reductions known as allowances. Therefore, it is important to accrue returns and allowances at the time of sale, avoiding overstating the income statement.
Therefore, the accounting will be FOR CASH SALES:
Then if a return were to occur you will FOR CASH SALES:
If you are “expecting” a sales return, your accounting could be FOR CASH SALES:
If the “expecting” does actualize to a sales return, you will FOR CASH SALES:
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