What term is used to describe the process of sending goods back to the supplier?

Multiple choice question for Accounting Mcqs. Select an option, then review the explanation below.

Explanation

When items are sent back to the supplier, it is referred to as a purchase return. This differs from sales return, which involves goods being returned by customers. 'Return inwards' pertains to sales returns, while 'merchandise return' is a less precise term.

Practice related questions from the same subject.

1.What is the accounting method called that systematically allocates the unexpired cost of fixed assets as expenses over multiple accounting periods?
2.What is the term used for any written document that serves as proof of a business transaction?
3.What term is used for the price reduction granted on faulty or damaged goods?
4.What is the term for the money invested by the owner to initiate a business?
5.What term is used to describe a decrease in the original price of an item?

What term is used to describe the process of sending goods back to the supplier?

Explanation

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