Question

Purchase returns and allowances usually occur at the point of inspecting and counting the goods or at the point of validating vendor invoices. True or False?

Answer 1

Purchase returns and allowances usually occur at the point of inspecting and counting the goods or at the point of validating vendor invoices.

Step-by-step explanation:

Purchase returns and allowances usually occur at the point of inspecting and counting the goods or at the point of validating vendor invoices. This statement is true. Purchase returns and allowances refer to situations where a buyer returns goods to the seller or receives a price reduction due to damaged or defective goods. It is during the inspection and counting of goods or the validation of vendor invoices that such issues are identified and the necessary adjustments are made.