The entry to record the return of merchandise from a custome

Solution

The entry to record the return of merchandise from a customer would include a Debit to Sales Returns   and Credit to Accounts Receivable (Assuming sales was made on account. If sales was for Cash, the accounts receivable will be replaced with cash) Example- Merchandise Return of $ 1000 Account titles and explanations Debit Credit Sales Returns $       1,000 Accounts Receivable $       1,000 (To record merchandise returned from customer)