Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
westvillagedrape
Level 2

Customer refund / leftover 2019 vendor credit -- how to enter on Schedule C?

Working on Schedule C "Returns and Allowances" -- customer returned some equipment, which we refunded in full.  Manufacturer gave us credit instead of a refund for our cost.  It's 2020, and we still haven't used up the credit.

 

How do we document all of this on Schedule C?

 

Thank you!

Dede O'Hair

1 Best answer

Accepted Solutions
RobertG
Expert Alumni

Customer refund / leftover 2019 vendor credit -- how to enter on Schedule C?

Claim the amount refunded in full as returns and allowances, if you included the sale as part of gross receipts.  

 

Include the credit in ending inventory.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

2 Replies
RobertG
Expert Alumni

Customer refund / leftover 2019 vendor credit -- how to enter on Schedule C?

Claim the amount refunded in full as returns and allowances, if you included the sale as part of gross receipts.  

 

Include the credit in ending inventory.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

westvillagedrape
Level 2

Customer refund / leftover 2019 vendor credit -- how to enter on Schedule C?

That makes sense... thanks!

Privacy Settings
v