Online Accounting Quiz Help-Everything You Need To Know

As a business owner, you are likely very familiar with the concept of returns. Whether it’s a product that your customers didn’t like or a service that didn’t meet their expectations, returns are just a part of doing business. However, when it comes to accounting for returns, things can get a bit tricky. That’s why we’ve put together this online accounting quiz help guide toReturns
 
When a customer returnsto a store, the transaction is typically processed as a refund. This means that the original sale is reversed and the customer receives a credit for the purchase price. In some cases, the customer may also receive a store credit instead of a refund.
 
In terms of accounting, refunds are relatively simple to process. The original sale is reversed and the customer’s account is credited for the purchase price. If the refund is processed as a store credit, then the store’s inventory is increased by the value of the credit.
 
Returns can get a bit more complicated when the item being returned is not the same as the item that was originally purchased. For example, if a customer buys a shirt and then returns it because it’s too small, the store needs to account for the difference in value between the shirt and the store credit.
 
This type of return is typically processed as a return for store credit. The original sale is reversed and the customer’s account is credited for the purchase price. The store then issues a store credit for the difference in value between the shirt and the store credit.
 
If you’re still feeling a bit confused about how to account for returns, don’t worry. Our online accounting quiz help guide has plenty of other great resources that can help you get a better understanding of this topic. Be sure to check out the rest of our accounting quizzes so you can brush up on all the topics you need to know for your test or exam. Good luck!