Purchase Returns
Code: 5114
👁 Views: 89
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Credit |
Definition
Value of goods returned to suppliers due to defects or errors
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 2
Inventories
US GAAP
ASC 330
Inventory
❓ Frequently Asked Questions
Q: How are purchase returns recorded?
A: Dr. Accounts Payable, Cr. Purchase Returns (contra-purchase), and Cr. Input VAT (if applicable).