Concept:Returns inwards are goods returned to the business by its customers, commonly called sales returns.
Explanation:From the trading account information, the
4,000 figure represents goods sent back by customers.
Such returns reduce the total sales of Umeh Enterprises for the year ended 31st December 2019.
In the trading account, returns inwards are subtracted from gross sales to arrive at net sales.
This item is not an expense like carriage outwards, nor is it related to purchases like carriage inwards or returns outwards.
Thus, the
4,000 is correctly identified as returns inwards.
Answer:D. returns inwards