Section 280-RICR-20-70-29.6 - Returned MerchandiseA. The tax computation does not include the amount charged for merchandise returned by customers upon cancellation of the contract of sale if the full sale price, exclusive of handling charges, is refunded and returned within 120 days from the date of sale.B. A deduction may, accordingly, be taken for returned merchandise, if the following conditions are fulfilled:1. The sale is rescinded under the terms of the sale agreement, or pursuant to the election of the customer as in the case of a breach of warranty;2. The full sale price, including that portion designated to be on account of "sales tax," exclusive of handling charges paid, is refunded or credited to the customer; and3. The merchandise is returned within 120 days from the date of sale or purchase.C. The term "returned merchandise" does not include repossession or recapture of merchandise by legal process, abandonment of contract, voluntary surrender of goods without entire refund or full credit for amount paid, or goods accepted in trade or barter.280 R.I. Code R. 280-RICR-20-70-29.6