In This Chapter
• Giving discounts
• Taking returns
• Getting credit
• Writing off bad debt
We’ve discussed how you record sales and manage the accounting for products you sell. Everything we’ve talked about so far is when things go exactly as planned with no need for adjustments.
But business never works that smoothly; you always need to make adjustments. You could decide to offer sales discounts to generate more business or get rid of out-of-season merchandise. You’ll most likely have people return purchases or need to make allowances for damaged goods.
Goods you purchase for resale also may require adjustments. You may get a purchase discount based on the volume you buy or the timeliness in which you pay the ...