I sold a product from inventory, for let's say $200 cash. When the product was received by the customer, it had been damaged, so the product has zero value. I refunded the $200 in cash to the customer. How do i account for this transaction?
However, I'd still recommend contacting your accountant for guidance in handling your customer's refund and for the accuracy of your accounting books. If you haven't yet, you can use this link to find a bookkeeper near you: Business is better with a ProAdvisor.