Hi!How to record the sales return by products and how to reflect the impact of the return on sales,cost of goods and inventory using Journal Entry?

It's nice to see you here in the Community space, basharacare.

I'll share information about recording sales returns in QuickBooks Online.

A journal entry isn't used to record sales return by-products. If you use a journal entry, it will only affect the account balances, not the actual count of your inventory items.

A refund receipt or credit notes should be created for returned items. This will debit the income associated with the products you're refunding and credit the payment account. 

Here's how to record a refund using a refund receipt:

1. Click the + New icon, then select Refund receipt.
2. Choose the customer from the Customer dropdown.
3. In the Refund from dropdown, choose the bank account where you deposited the payment.
4. Make sure to add the correct products or service your customer returned in the Product/Service column.
5. Fill in the rest of the necessary information.
6. Once done, hit Save and close.

These are the steps if you prefer to use credit notes.

Step 1: Create a credit note.

1. Click + New.
2. Select Credit note.
3. In the Customer dropdown, select the customer's name.
4. Make sure to add the correct products or service your customer returned in the Product/Service column.
5. Fill in the rest of the necessary information.
6. Once done, hit Save and close.

Step 2: Apply the credit note to an invoice.

1. Click + New.
2. Select Receive payment.
3. In the Customer dropdown, select the customer.
4. In the Outstanding Transactions section, choose the open invoice you want to apply the credit note to.
5. In the Credits section, select the credit notes you want to apply. 
6. For the open invoice in the Payment column, enter how much of the credit you want to apply.
7. Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
8. Fill out the rest of the form, including the Payment date.
9. Make sure the total is correct after applying the credit note.
10. Once done, hit Save and close.

If you need to record the sales return via a journal entry, I suggest consulting your accountant for assistance. This will ensure that your books remain accurate.

I'm adding these articles to learn more about refunds in QuickBooks Online:

• Create and apply credit notes or delayed credits in QuickBooks Online
• Record a customer refund in QuickBooks Online

It's a pleasure to collaborate with you. If you require any additional assistance with recoding sales returns, please use the Reply button below. Take care and enjoy your day.