Which accounts are affected when credit customers return goods?
submitted by Frobert

jb

When credit customers return goods, the accounts receivable account decreases because you're collecting less money. The sales returns and allowances account increases to reflect the returned items.

PB and Silly

So, when someone who bought something on credit sends it back, the company's receivables go down. The company records the return as a sales return account to show that sales have decreased.