Sale return or return inward
Describe Sale return or return inward in brief.
Expert
Sale return is as well termed as return inward. Owing to fault in our sold goods, the customer sends us goods that increase our inventory and it is the decrease of customer's debt, when he bought goods on credit from us. Or else, we return his money. Return inward points out that quality of our goods is not good and we have to enhance it.
Average Profit Method: (Goodwill method): The profit earned by an organization throughout previous accounting periods on an average basis is termed as average profit. Goodwill is computed on the basis of average profit due to prospect expectations of
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