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Posted by Paul Thomas, CPA on February 22, 2008, 7:42 am
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> 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)?
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.
--
Paul A. Thomas, CPA
Athens, Georgia
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