Tax category for returned merchandise

Community UserCommunity User Member ✭✭✭✭
edited October 2018 in
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!

Comments

  • gmalis1gmalis1 Member ✭✭✭✭
    edited February 2017
    > 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!Initial charge of $1500.00: Enter $1500 in payment column, categorize as "Computer"Refund charge of $1500.00: Enter -$1500 in payment column, categorize as "Computer" (remember the minus sign in the "Payment" column!)Corrected cost of $1300.00: Enter $1300 in payment column, categorize as "Computer"Now you have a total charge of $1300, and the two $1500 charge and credit cancel each other out!
  • Rocket J SquirrelRocket J Squirrel SuperUser ✭✭✭✭✭
    edited October 2018
    > 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).Looks like they still owe you $50.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win7 Pro & Win10 Pro.
  • MikeBMikeB Member ✭✭✭
    edited August 2016
    > > 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).> > Looks like they still owe you $50.LOL. Good catch! :^O_____________________MikeB
  • gmalis1gmalis1 Member ✭✭✭✭
    edited February 2017
    I was assuming the $1550 initial cost was a typo and should have been $1500.
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