Purchases Returns or Returns Outwards

Definition

If goods purchased are found defective, unsatisfactory or excess in quantity, they are returned to the supplier, these are called purchases returns or returns outwards.

Example:

Goods of $500 returned to Marry.
Generally, goods are returned due to the following reasons:

  1. When goods are defective
  2. When goods are not according to specification.
  3. When goods are damaged.
  4. When goods are below standard.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.