Customer returned merchandise for credit.This will be recorded with:

Name: Customer returned merchandise for credit.This will be recorded with:
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

When a customer returns merchandise for credit, it means that the company owes the customer money, which is recorded as a liability on the company's balance sheet. Therefore, the transaction would be recorded with a credit to an asset account (such as Accounts Receivable) to reduce the amount owed by the customer.

Customer Returned Merchandise for Credit