Sales returns - accounts, Accounting Basics

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Illustrate Sales returns.


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jaina

2/12/2013 5:18:24 AM

A sales return or return inwards arises when goods previously sold by a business are returned by a customer. The return of the item reduces the income of the business in receipt of the returned goods. Alternatively, they experience an increase in an asset as their stock has increased. The business returning the goods experiences a decrease in asset and there is a decrease in liability to the business selling the goods.

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