Hello, I returned a few items and the vendor/supplier credited me less a 10% restocking fee. In other words, the refund was credited to my bank account, minus the restocking fee. What is generally the most accepted way for accounting for this 10% stocking fee on a Schedule C?
1. In the COGS section, ensure the returned items are subtracted from purchases and add the restocking fee as "Other Costs."
2. In the COGS section, count the restocking fee toward purchases?`
3. In the Expenses section, enter the restocking fee as Commission and Fees (line 10)
4. In the Expenses section, enter the restocking fee under other expenses?
5. Another COGS or Expense accounting method?
Thanks for the help!
Thanks much!
