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

westvillagedrape · ‎April 14, 2020

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

RobertG · ‎April 14, 2020

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.

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westvillagedrape · ‎April 14, 2020

That makes sense... thanks!

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

Business & farm

Business & farm