Question

Why is purchase return when being an expense credited in a journal entry and why is sales return credited when it is an asset​

Answer 1

Answer:

Tis the season for purchase returns … all year long. Because if you sell products at your business, you know that not all customers are satisfied. If a customer wants to bring back an item, you need to make sales returns and allowances journal entries.

Returns are a normal part of running a business. But if you don’t know how to account for a return with a purchase returns and allowances journal entry, your books will be inaccurate

Answer 2

Why purchase return is credited?

Definition of Purchase Return

Definition of Purchase Return A purchase return occurs when a buyer returns merchandise that it had purchased from a supplier. The account Purchases Returns is a general ledger account that will have a credit balance (or no balance). Its credit balance will offset the debit balance in the Purchases account.