Where and how would you report a chargeback on taxes?
I mean the 'customer' has received the 'product' but has decided to stiff us over, im guessing it gets written off as a loss but im not 100% on this.
Regards,
Lee
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Where and how would you report a chargeback on taxes?
I mean the 'customer' has received the 'product' but has decided to stiff us over, im guessing it gets written off as a loss but im not 100% on this.
Regards,
Lee
Lee:
In the US I would write it off as bad debt. You sold a service so it is posted as sales revenue. When you receive the charge back(usually during a later accounting period) i would write it off as an adminstrative expense - bad debt for the amount equal to the sale and the balance would go against bank charges or processing fees.
The net result you don't distort your current months revenues.
R
Agreed. Last year I was told to put it under bad debt as well.
add another for bad dept.
This is what our accountant does for us though.
We do them as bad dept as well as write off the products/dvds that were sold and the shipping costs of those products.