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How to write accounting entries when red-ink invoices are offset?
The scarlet letter write-off method refers to write-off or write-off the original error record with scarlet letter. Generally, accounts receivable account and main business income account can be set, so how to make specific accounting entries when the invoice is written off in red?

Accounting entry of invoice red reversal

The accounting entries for 1. invoicing are as follows:

Debit: accounts receivable/bank deposits

Loan: income from main business

Taxes payable-VAT payable (output tax)

2. The accounting entries of invoice red-ink offset are as follows:

Debit: Accounts Receivable/Bank Deposit (in red ink)

Loan: income from main business (in red)

What is scarlet letter sterilization?

The red-letter write-off method, also known as the red-letter adjustment method, refers to the method of writing a set of correct accounting entries in blue after writing a set of accounting vouchers exactly the same as the wrong account in red, which is generally used for the wrong use of accounting subjects.

What are accounts receivable?

Accounts receivable refers to the money that an enterprise should collect from the purchasing unit when selling goods, products and providing services in the normal course of business, including the taxes and fees that should be borne by the purchasing unit or the labor service receiving unit, as well as various transportation and miscellaneous fees paid by the purchasing party. Accounts receivable is a kind of creditor's right formed with the sales behavior of enterprises. Accounts receivable include creditor's rights that have occurred and will occur in the future. The former is a creditor's right that has happened and is clearly established, and the latter is a creditor's right that has not happened in reality but will definitely happen in the future.

What is the income from the main business?

Main business income refers to the operating income obtained by enterprises engaged in production and business activities in this industry. The main business income includes the sales of manufacturing products and semi-finished products and the provision of industrial services; Income from commodity sales by commodity circulation enterprises; Ticket income, tourist income, catering income of tourism service industry, etc.