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December 11, 2018
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Which account should a restocking fee be in?

  • December 11, 2018
  • 1 reply
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When I have to charge a customer a restocking fee on a return should my restocking fee "item" be in the account "merchandise sales" which is an 'income' account; OR in my 'inventory purchase' account which is a 'Cost of goods sold' account; OR in my 'inventory asset' account which is an 'other current asset' account? Thank you for any clarification.

Best answer by Raywhite28

I'd make it a separate income account.

1 reply

Raywhite28
December 11, 2018

I'd make it a separate income account.