On January 21,2019,Cressent Company received merchandise from Neptune Company.On that date,Cressent found a few of these goods to be damaged.On January 22,Cressent returned the damaged goods to the seller.Such returns will be treated as ________ by Cressent.

Question

Quizplus · Accepted Answer

Since Cressent Company received damaged goods from Neptune Company, it implies that Cressent Company is the buyer and Neptune Company is the seller. In such cases, when a buyer returns goods to the seller because they are damaged, it is recorded as a purchase return. Hence, in this scenario, Cressent Company will treat the returns as purchase returns.

On January 21,2019,Cressent Company Received Merchandise from Neptune Company