I'm gonna recommend this channel to my friends making my life easier. although in my class they've added Inventory and COGS to make it a little complicated but this is pure gold. Thanks a lot. Cheers!!
Hi ...thanks for the lecture; it's very helpful......do you mind explain to me related to this video on what the sales return contribution to the current inventory? say for case #1 the inventory/goods returned can be sold back to other customer and case #2 the goods are damage and need some repair cost to fix them.......thank you....
After we have made an entry for Allowance for sales return and allowances, what if the customers don't return the product. Do we just show the net sales as $85000 even though nobody returned the items?
So in my income statement, would a return (customer didn't like the product) fall under the Revenue or Expense account? I'm still not clear on this in terms of the income statement.
why not debit returned merchandise since you got the mech back valued at 5,000 and credit sales return and allowances for 5,000 to reflect what really happened?
because they cut the price of the product(like a discount, which is an expense) for other customers due to defective parts (not sure but i think thats the step)
Perfect. I had no idea what an allowance was and now I do. Thanks for posting.
I'm gonna recommend this channel to my friends making my life easier. although in my class they've added Inventory and COGS to make it a little complicated but this is pure gold. Thanks a lot. Cheers!!
Thanks for sharing the videos with your friends, and good luck in your class!
Great explanation 👍
Hi ...thanks for the lecture; it's very helpful......do you mind explain to me related to this video on what the sales return contribution to the current inventory? say for case #1 the inventory/goods returned can be sold back to other customer and case #2 the goods are damage and need some repair cost to fix them.......thank you....
Thank you sooo much, you make it very easy and clear for me
Why should we debit allowance and credit allowance for sales returns and allowances ?
Explain please
Do product discounts before the customer has purchased count as a sale allowance?
Depends on the business
Is the allowance account in third entry the same as a "reserve" account?
After we have made an entry for Allowance for sales return and allowances, what if the customers don't return the product. Do we just show the net sales as $85000 even though nobody returned the items?
So in my income statement, would a return (customer didn't like the product) fall under the Revenue or Expense account? I'm still not clear on this in terms of the income statement.
Same problem here
It would be recorded in an adjustment to revenue account.
why not debit returned merchandise since you got the mech back valued at 5,000 and credit sales return and allowances for 5,000 to reflect what really happened?
because they cut the price of the product(like a discount, which is an expense) for other customers due to defective parts (not sure but i think thats the step)
Where's the rest???
Yeah, thanks.
Thank you sooo much, you make it very easy and clear for me