What account does returned merchandise go under?

[HTJ194]

I ordered something (recorded it as an expense) and then returned it and my account was credited the amount. What is the correct category that goes under in QuickBooks?

Thank you for your time!

[tallen]

Credit it back to the same account you charged the expense to...

[jamesray50]

I agree with Tallen, credit the same account you originally debited. This will zero out the expense.

[ryanbutton]

I would create a new account - a 'contra-expense' account - so that you can have a record of the amount of returns. You can bucket this with expense account and it will still zero out.

[TAAccounting]

HTJ,

Accounting has a rule on this "Matching Principle" which dictates that whatever account it came out of, it must go back to the same account.

What Ryan is implying is used for "Income" related returns, not expenses. You want to track your "refunds" separately as it is used to gauge your customer satisfaction and quality control.

I hope this helps!