What Are Purchases Returns

Goods or merchandise returned by the buyer to the seller, Accounts Payable (supplier) because the buyer finds goods unsatisfactory, or lower quality or damaged goods or wrong delivery of goods ordered, then he (buyer) sends a Debit Note to the seller that he debit the Accounts Payable Account with the amount of goods returned to him. It is also called Purchase Returns Contra Expense Account.

Purchases Returns Journal Entry

Or

Returned Merchandise Journal Entry

Journal Entry For Returning Of Damaged Goods

The buyer enters the following Journal Entry in the Purchase Return Book as shown below:

                         Accounts Payable a/c       XXX

  

                                                          Purchases Returns a/c       XXX

(Goods Returned To Seller Due To Unsatisfactory Conditions)

Is Purchase Returns Nominal Account?

Or

Purchase Return Is What Type Of Account?

No, as it is a Contra Expense Account which is deducted from Gross Purchases on Income Statement or Trading And Profit And Loss Account.

Purchases Returns are also known as Purchase Outward.