Goods returned by the buyer is recorded in the seller's book as

Goods returned by the buyer is recorded in the seller's book as "returns inwards". This is because it is a return of goods to the seller by the buyer. Returns inwards is also known as sales returns or returns from customers. It is recorded as a reduction in sales revenue and accounts for goods returned by customers. By recording returns inwards, the seller can keep track of the amount of goods returned by customers, the reason for returns, and take corrective measures to minimize such returns in the future.