PRC-1 · Chapter 10 · Question 28 of 100
How are 'Return Outwards' (Purchase Returns) treated in the calculation of Cost of Sales?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) They are deducted from Gross Purchases to arrive at Net Purchases.
Explanation
Return outwards represent goods returned to suppliers. They reduce the total cost of goods acquired and are subtracted from purchases.
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