Question

purchase returns is an example of​

Answer 1

Answer:

Therefore, the supplier has to receive those goods back and make the subsequent entry in their accounts and ledgers to ensure that they are able to maximize the overall returns.

In the case of purchase returns, it can be seen that goods are returned to the supplier, and subsequently recorded in General Ledger under the account of Purchase Returns.

The purchase returns account will always have a credit balance. This credit balance will then be offset by the Debit Balance in the Purchase Account.