Tax category for returned merchandise
Community User Member ✭✭✭✭
I download my credit card statements from the internet and then import my Quicken data into a tax program with the appropriate tax categories assigned.My question relates to merchandise that I buy that is later returned to the store. Case in point:I bought a computer for my business, along with a few other items. The computer didn't ring up right, so they credited my card back for that purchase. My credit card statement looks something like this:In the charge/exp column there is a charge for $1,550.Then in the Payment column there is a refund of $1,500 (for the incorrect cost of the computer).Then in the charge column there is a charge for $1,300 (which was the correct cost of the computer).It seems to look like I spent $2,800 on two computers and somehow made $1,500 in income.So, how do I assign tax categories to these transactions? Should I leave the first charge with no assigned tax category, since my statment at least balances? And should I leave the refund transaction tax category blank as well? It ends up looking like income of some sort.Any advice would be appreciated.Thanks!