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QUESTION DETAIL
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We printed a product for our client and then they found some errors and they asked us to recycle the product. We billed the client and taxed them based on the tax rate where the product was recycled. The client does not feel they should pay sales tax since the product was never used. How do we account for this transaction?
ANSWER
Expert Linda Burroughs's Answer:
You may have lost a client because of your errors. You need to absorb the entire cost.
