Accounts Receivable


A

Alan Zengel

I use QBooks for a retail shoe store. When someone makes a return, I put in
a credit memo. On the balance sheet that shows up as an Accounts
Receivable.

How do I treat the balance sheet at the end of the year to eliminate the
Accounts Receivables - there are no accts receivables! I tried to credit
the Accts Receivable acct and debit sales. That didn't register. How do I
treat his?
 
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L

Larry Stinson

When you select "Credit Memo" from the "Customers" menu, you can click on
"Check Refund" at the top right of the Credit Memo form. That way, a credit
to Accounts Receivable is not created. And if you are refunding the
customer's money in cash, uncheck the "To be printed" checkbox just above
the Expense/Item distribution area of the check. I would also put "Returned
merchandise" or "Refund" in the Memo part of the Check Form.

For the existing credits in Accounts Receivable, you can clear those using a
Journal Entry (select "Make General Journal Entries" from the "Banking"
menu). In the Journal Entry, you will debit Accounts Receivable, and
assuming you returned the customers' money, you will credit Cash.
 

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