Question
Do I categorize PERSONAL debits (ie. friend paying me back or returned purchase) as "Personal > Income > Returned Purchase", or as "Personal > Shopping"? Any difference?
I have a question about how to categorize personal non-income debits, such as returning a personal purchase, or even just a friend paying me back for dinner. for years, i've been categorizing these as "Personal > Income > Returned Purchase"; however, today I noticed that if categorize it as "Personal > Shopping" it changes my total income and expense numbers. is one or the other of these a better way to do this, and will the difference have any effect on my tax reports?