What does the Sales returns book record?
Understand the Problem
The question is asking to identify what the Sales returns book specifically records based on the options provided. It pertains to the concept of sales and returns in accounting.
Answer
Records goods sold on credit that are returned by the customer.
The sales return book records goods sold on credit that are returned by the customer. It records transactions where goods were initially sold on credit and later returned, and is also known as the 'returned inward book'.
Answer for screen readers
The sales return book records goods sold on credit that are returned by the customer. It records transactions where goods were initially sold on credit and later returned, and is also known as the 'returned inward book'.
More Information
The sales return book helps businesses keep an accurate record of returns, which is essential for tracking and managing credit sales. When a return occurs, a 'Credit note' is issued as part of the process.
Tips
A common mistake is confusing sales returns with purchase returns. Ensure to differentiate between 'sales return' (items sold to customers being returned) and 'purchase return' (items bought by the business being returned).
Sources
- What type of transaction is recorded in the sales return book? - BYJU'S - byjus.com
- Sales Return Book: Meaning, Format, and Example - GeeksforGeeks - geeksforgeeks.org
- Sales returns book is used to record - Toppr - toppr.com
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