Purchase returns and allowances usually occur at the point of inspecting and counting the goods or at the point of validating vendor invoices.

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Purchase returns and allowances can occur either during the inspection and counting of goods or at the point of validating vendor invoices. This is due to the fact that the buyer may discover a defect or issue during the inspection, or the vendor may make an error on the invoice. As a result, the buyer may request a return or allowance, which would be recorded in the purchase returns and allowances account.

Purchase Returns and Allowances Usually Occur at the Point of Inspecting