Differences Between Purchases Returns And Sales Returns
Purchases Returns is t he retur ning of goods or products to suppliers or vendors by t h e company due to defective, damaged goods or due to ot h er valid reasons w hile Sales Returns is t he retur ning of goods b y customers to compa ny due to defective or damaged goods or goods delivered to customer not according t he co nditions agreed upon, etc. Purc hases Retur ns is an example of Contra Expense Account w hile Sales Retur ns is an example of Contra Revenue Account .