When customers return goods, which account should be debited to record this transaction?

Choose the correct answer

Explanation

When goods are returned by customers, the appropriate account to debit is the Sales Returns account (also known as Return Inward account). This reduces the total sales value to reflect the returned items. Other accounts such as Sales income or Sales account are credited when sales are made, whereas Expenses accounts are unrelated to sales returns.

When customers return goods, which account should be… — Accounting Mcqs | PakQuizHub