Question

The document a farmer issues to the buyer is referred to as
return outward.
invoice.
return inward.
credit note.

Answer 1

Answer:

invoice

Explanation:

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Answer 2

Answer:

Goods which we purchased on credit if returns back it is called return outwards(Purchase return) where as goods which we have sold and returned by the customer is called return inwards(Sales Return)

Explanation:

They are also called “Sales Returns”. Inward returns reduce the total accounts receivable for the business. It is a sales return and on the other, it is a purchase return.

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Journal Entry for Return Inwards.

Return Inwards A/C Debit Debit the decrease in revenue

To Customer's A/C Credit Credit the decrease in assets