How to record a chargeback as a business expense?

diegol

I would like to know how to record a chargeback as a business expense in order to write it off. I didn't use a wave invoice for the service I got the chargeback from.

HelpIfICan

Two journal entry transactions:

Revenue (debit)
Cash (credit)

inventory (debit)
Cost of Goods Sold (credit) (remember this amount will be smaller than revenue and cash)

diegol

HelplflCan that sounds more focused for products. What about for services? Basically, I delivered a service which then the client didn't like...so he made a chargeback.

Mikeg

@diegol,
Sounds as though you are using the cash basis of accounting. Meaning, you recognize revenue when deposited and expenses when paid. If so, no adjustment is necessary because you never recognized the revenue. However, for accrual basis, where you have receivables, debit sales and credit accounts receivable.