Sales returns

[m2121]

I need help with a question that I was wondering for accounting regarding sales returns. I was wondering, how are sales returns calculated?? is it from the selling price of the stock?? Because I did the exercises and found that for sales returns in the general ledger, the sales return amount was from the selling price instead of the cost price. The cost price is for cost of sales and stock control amount. However, I read something that seemed to confuse me - perhaps the wording. Please clarify this --> "When calculating cost of sales, you must subtract sales return" This is the part i understand but not this part afterwards--> "Also, when calculating sales returns, make sure you are entering the cost price of stock, not the selling price of stock (as they usually give you the "sales returns" amount which is the selling price, not cost price)."

[vcestressed]

I need help with a question that I was wondering for accounting regarding sales returns. I was wondering, how are sales returns calculated?? is it from the selling price of the stock?? Because I did the exercises and found that for sales returns in the general ledger, the sales return amount was from the selling price instead of the cost price. The cost price is for cost of sales and stock control amount. However, I read something that seemed to confuse me - perhaps the wording. Please clarify this --> "When calculating cost of sales, you must subtract sales return" This is the part i understand but not this part afterwards--> "Also, when calculating sales returns, make sure you are entering the cost price of stock, not the selling price of stock (as they usually give you the "sales returns" amount which is the selling price, not cost price)."

Hey,
I tried to give myself an example when I thought about this so I'll try to explain it to you like that.
Say you buy $5 lollies from me that actually COST me $3 (my profit was $2). When you return those lollies, I will give back your $5. When I calculate my sales returns,  I would write $3 not $5 because I have not earned that profit if you returned those lollies. If you return something, the profit is not even earned therefore I would not even consider the $2. Total sales are sales minus sales returns and in this case the stock cost price was $3.
Hope this makes sense.