Question

Example of purchase return

Answer 1

Answer:

There is need to account for purchase returns as though no purchase had occurred in the first place. Hence, the value of goods returned to the supplier must be deducted from purchases. Where purchase was initially made on credit, the payable recognized must also be reversed by the amount of purchases returned.

Answer 2

Answer:

Hi!! The answer is below.

Example of Purchase Return Journal Entry

There is company A ltd. purchased goods from suppliers worth $ 150,000 on 1st September 2019 by paying the cash with the condition that goods can be returned only within 15 days from the date of purchase. On 13th September 2019, A ltd returned the goods to the supplier.

Hope this helps u!!!