USA Customer credit and net income


Joined
Feb 21, 2019
Messages
1
Reaction score
0
Country
us
At the end of the tax year a credit for a regular customer remains on my small business LLC's books. Does this increase or decrease my company's net income? Thx
 

kirby

VIP Member
Joined
May 12, 2011
Messages
1,469
Reaction score
203
Country
us
Depends on the entry that created the credit.
If customer paid you in advance, then entry was Dr cash and Cr customer account. So no effect on net income.
If a sale was reversed and entry was Dr Sales Cr customer account, then income was reduced.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top