Goods returned by customers should be debited to which account

Return inward account also called sales return account records goods that customers send back after sale. When goods are returned revenue must be reduced to show the true sales figure for the period. Debiting the return inward account and crediting the customer or cash book reverses part of the original sale entry. This keeps the sales ledger accurate and helps management review reasons for returns like quality issues wrong size or delivery delays. Regular analysis of return inward data supports better control over product quality packing and customer service. It also improves pricing and warranty policies which leads to stronger trust and repeat purchases in the long run.