1. The accounting method for sales return is:
When the recognized revenue is returned from sales:
Debit: main business income
Tax payable - VAT payable (output tax)
Credit: bank deposit
At the same time:
Debit: goods in stock
Credit: main business cost
When the unrecognized revenue is returned from sales:
Debit: goods in stock
Credit: issued goods
2. The accounting method for sales discounts is:
When sales discounts occur:
Debit: main business income
Tax payable - VAT payable (output tax)
Credit: accounts receivable
When the payment is actually received:
Debit: bank deposit
Credit: accounts receivable
In case of return of goods sold with recognized revenue, the enterprise shall offset the revenue of goods sold in the current period and the cost of goods sold in the current period. In case of sales return of goods sold with unrecognized revenue, the enterprise shall debit "goods in stock" and credit "goods issued" to offset the amount of goods cost recorded.
When a sales allowance occurs, it should be debited to the "main business income", offset against the sales income amount, offset against the corresponding VAT output tax at the debit, and credited to the "accounts receivable" account. When the money is actually received, it is debited to "bank deposit" and credited to "accounts receivable".