how does overcasting sales return affect sales control and total sale ledger
Answers
Answer:
cost of sale increase and profit will decrease
Every now and then, a business makes various sales in order to gain some form of revenue. These sales validate the purpose of a business. They provide a lifeline to a business and give them a reason to exist. Without sales, a business would find its existence redundant. Let us study in detail about the preparation of a sales book and a sales return book.
When a business sends back the ordered goods to a vendor, it is recorded in the sales return book. At times the buyer may return goods due to the poor quality of the product, an inaccurate quantity of the product, untimely delivery or other such reasons.
It is also called returns inward and an appropriate sales return or a returns inward book is maintained for recording entries related to the same. All returns are primarily recorded in the sales return book unless the returns are not that frequent, in which case they are recorded in the journal.
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