My small business uses a store credit system for items our customers will trade in that we later sell. We had a substantial amount of store credit used last year (~$35,000) and my business partner and I are trying to figure out how to file this in our taxes. Our POS includes it in our sales and we do pay sales tax on the store credit used. We also have a total balance of about $2,500 still amongst all our customers.
Does anyone have experience with something like this?
Does anyone have experience with something like this?