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hello sir!
the opening stock is $1200, production is $8000 and the closing stock is $10000.
Is the increase in closing stock due to sales return or purchase return?
I am puzzled as to why you are asking me this, because it could not possibly be asked in the real exam!
The most obvious reason for the increase in inventory (we stopped calling it stock several years ago) is because of the production (less whatever sales were made). However the remaining increase can only be because of a return of sales made in a previous period.
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