A contra-revenue account to record returned goods is:

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A contra-revenue account is used to record a reduction in revenue, such as returns or allowances. The account Sales Returns and Allowances is specifically used to record returned goods. Freight-In is an expense account used to record the cost of shipping goods to the company, Purchases Returns and Allowances is a contra-expense account used to record reductions in the cost of goods purchased, and Sales Discounts is a contra-revenue account used to record discounts given to customers for prompt payment.

A Contra-Revenue Account to Record Returned Goods Is