Sales return account

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How to creat sales return account

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Sales is credit income account but sales returns is expenses debit account because it opposite to sales.
Chart account - profit and loss accounts - add new account

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So it appear in expenses, but should appear discount from sales. You understood me?

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According to perpetual inventory system there is no need to sales return account.
Inventory on hand decrease by sales and increase by sales return
When we sell debit: cost of goods sold
Credit: Inventory on hand.
In case of sales return debit: Inventory on hand
Credit: accounts receivable or cash.