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January 21, 2023
Question

Where exactly do you record your refunds on the 1065? Is it line 1b (returns and allowances), or is it supposed to go somewhere else?

  • January 21, 2023
  • 2 replies
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    2 replies

    Employee
    January 21, 2023

    Where exactly do you record your refunds on the 1065?

     

    Line 1b, particularly if you maintain an inventory.

    Employee
    January 21, 2023

    Or, specifically:

     

    A sales return is a cash or credit refund you gave to customers who returned defective, damaged, or unwanted products. A sales allowance is a reduction in the selling price of products, instead of a cash or credit refund.

    Carl11_2
    Employee
    January 21, 2023

    "Returns and Allowances" is for refunds that you give back to clients/vendors/customers.