On January 21,2016,Bessant Company received merchandise from Mullies Company.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.
A)purchase returns
B)sales returns
C)purchase allowances
D)sales allowances

Question

Quizplus · Accepted Answer

Since Bessant Company received the merchandise from Mullies Company, it was a purchase transaction. Returning the damaged goods to the seller on January 22 constitutes a purchase return since it involves returning goods to the seller due to damage or defects. Hence, the best choice is A) purchase returns.

On January 21,2016,Bessant Company Received Merchandise from Mullies Company