Goods worth 5000 are sold in Dec 2014. The cost of these goods is 3000. Books are closed for 2014 and in Jan 2015 all these goods are returned by the customer. Are my entries below correct? Pls advise.
When goods sold:
dr AR 5000
cr sales 5000
dr Cost of sales 3000
cr Inventory 3000
when goods are returned in Jan 2015
Just reverse the above entries (is it correct to it this way?)