On January 21,2016,Bessant,Inc.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

The merchandise received from Mullies, Inc. is considered a purchase by Bessant, Inc. Therefore, the returned damaged goods would be considered purchase returns. Sales returns and allowances refer to goods returned or discounted by the buyer's customers, while purchase allowances refer to discounts granted by the seller to the buyer.