Difference between sales return and purchase return

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Sales return is when a customer returns a product to the seller, while purchase return is when a business returns a product to the supplier.

Sales return is initiated by the customer, while purchase return is initiated by the business.
Sales return is a reduction in revenue for the seller, while purchase return is a reduction in cost for the business.
Sales return is recorded as a debit to the sales returns account, while purchase return is recorded as a credit to the accounts payable account.
Example of sales return: A customer returns a defective product to a store for a refund. Example of purchase return: A business returns excess inventory to a supplier.

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