Question
Gross or Net Sales for Business Income and Customer Returns
Hi. I apologize for a duplicate similar post, but I'm still confused on this section.
I have a small ecommerce site (s-corp llc) that made it's first sales in 2020.
When entering my Sales and service receipts (business income), do I enter the gross sales and deduct the fees later, or just enter the net total 4428.63 or 4242.24?
Also I was using Strip as a payment processor, and after about $800 in sales they decided they did not approve one of my products and refunded every transaction! Do these sales need to be reported as income and then add the transaction refunds as a customer return or loss? I still mailed the products out, so that's a loss as well.
| Sales | |
| Gross Sales | $4,428.63 |
| Returns | $0.00 |
| Discounts & Comps | $0.00 |
| Net Sales | $4,428.63 |
| Gift Card Sales | $0.00 |
| Tax | $0.00 |
| Tip | $0.00 |
| Refunds by Amount | $0.00 |
| Total | $4,428.63 |
| Payments | |
| Total Collected | $4,428.63 |
| Fees | ($186.39) |
| Net Total | $4,242.24 |
Thank you!
