jijojose (Accountant) 13 December 2020
1.A sells goods to B for 10000(sales entry made ,no taxes involved).Later goods failed to pass tests conducted by buyer's country govt. officials and rejected.
2.Insurance company compensates full invoice value to seller i.e 10,000.
3.Seller sells rejected goods on behalf of insurance company to other party and pays salvage value to the company.
Please advice the best way to pass journal entries.
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