Purchases Return or Return Outwards

Definition

If goods purchased are found defective, unsatisfactory or excess in quantity, they are returned to the supplier, these are called purchases returns or returns outwards.

Example:

Goods of $500 returned to Marry.

Generally, goods are returned due to the following reasons:

  1. When goods are defective
  2. When goods are not according to specification.
  3. When goods are damaged.
  4. When goods are below standard.

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