On January 21^st, 2014, Bessant merchandisers, received merchandise from Mullies Inc. On that date, it found a few of these goods to be damaged. On January 22, it returned the damaged goods to the seller. Such returns will be treated as ________ by Bessant.

Question

Quizplus · Accepted Answer

Since Bessant merchandisers received the merchandise from Mullies Inc., the return of the damaged goods would be considered a purchase return. This means that Bessant will be returning the goods to the seller and receiving a refund or a credit for the cost of the damaged goods. Sales returns and allowances would apply if Bessant's customers were returning or receiving discounts on merchandise that they had purchased from Bessant, rather than Bessant returning damaged goods to its supplier.

On January 21st, 2014, Bessant Merchandisers, Received Merchandise from Mullies

On January 21^st, 2014, Bessant Merchandisers, Received Merchandise from Mullies