Question

When does a purchase return occur?

1) At the return of cash from the company back to a customer.
2) At the return of title from the company back to the vendor.
3) At the return of only the physical custody of goods from the company to the vendor.
4) At the return of only the physical custody of goods to the company from the customer.
5) At the return of title from a customer back to the company.

Answer 1

A purchase return occurs when the company returns the physical custody of goods to the vendor.

Step-by-step explanation:

A purchase return occurs at the return of physical goods from the company to the vendor. It is option 3: At the return of only the physical custody of goods from the company to the vendor.