When sales are made with a right of return, the sales revenue is recorded net of the expected amount of returns and a Refund Liability is also debited.

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When sales are made with a right of return, the sales revenue is recorded net of the expected amount of returns, but a Refund Liability is credited (not debited) to account for the obligation to return the customers' money for the expected returns.

When Sales Are Made with a Right of Return, the Sales