Purchase returns are recorded by the buyer as a decrease to inventory on the statement of financial position.

Name: Purchase returns are recorded by the buyer as a decrease to inventory on the statement of financial position.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Purchase returns are products returned by the buyer to the seller, hence decreasing the inventory of the buyer. Therefore, it is recorded as a decrease to inventory on the statement of financial position.

Purchase Returns Are Recorded by the Buyer as a Decrease