What is Sale Returns or Returns Inward Journal?

Ans.- A sales return or returns inward journal is a financial record used to record the return of goods or services sold by a business. It is used to track the return of goods or services that are not satisfactory or are not needed by the customer. Each entry in the sales return or returns inward journal includes the date, customer, amount, and description of the return. The sales return or returns inward journal is used to track the reduction in revenue caused by the return of goods or services, and the information recorded in it is used to prepare financial statements such as the balance sheet and income statement. The sales return or returns inward journal is also used to calculate the cost of goods sold (COGS) for tax purposes.