What happens when you accept to go to jail and serve the sentence?

U can either attempt to break out or serve your time.

You will also lose some skill levels, when you have served the sentence. It is scaled with the amount of time spent in jail.

escaping is actually pretty fun. so is beating up the guards and jacking their gear until you can get your own

You also lose all your stolen stuff which is pretty stupid imo b/c how do they know you stole a sweet roll. Theres 1million sweet rolls that looks like this one.

at some items the system works such as weapons, armor, mby book, etc which could be marked with signature or something, but yea, in some items it' just stupid (in sweet rolls as an example)

agreed, plus it seems like its more fun to resist arrest.

I really think that they shouldn't be able to take everything away from you. If you stole something from Riften how can a Markath guard know you stole that?

The game missed the underlying voicing script where whenever you got arrested, you confessed everything to the guards. No better explanation haha