Question

On January 21, 2019, Cressent, Inc. received merchandise from Neptune, Inc. 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.
a) sales allowances
b) sales returns
c) purchase allowances
d) purchase returns

Answer 1

Answer:

d) purchase returns

Explanation:

We are working for Cressent, we are asked for the point of view of Cressent.

The orignal transactions is purchase from Neptune therefore, is some units are damaged or simply unwanted we are facing a purchase return.

The sales returns will be from Neptune point of view.

Allowances refers to discounts on the nominal or list price. It do not related to returned goods.