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Chapter 7
4.3 Sales and purchase returns day books
It is normal for customers to return unwanted goods to the supplier, perhaps because
they have been damaged in transit, or the wrong goods were delivered. Equally a
business entity may occasionally have reason to return unwanted or damaged goods
to its suppliers.
Note that sales returns may also be referred to as 'returns inwards', which reflects the
situation that goods have been returned in to the entity. Similarly, purchase returns
may be referred to as 'returns outwards' to reflect the situation that foods have been
returned from the entity.
Any returns made to credit suppliers (or returns received from credit customers) are
recorded in separate day books as illustrated below.
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