Which of the following information is recorded in the returns outwards book?
-
goods purchased on credit and susequently returned to suppliers
- fixed asset bought on credit and subsequently returned to supplier
- cash payment received from a customer and subsequently returned to supplier
- goods sold to a customer and subsequently returned to the business
The correct answer is: A
Explanation
Returns outwards are goods returned by the customer or business to the supplier. For the supplier, this results in the following accounting transaction: A debit (reduction) in revenue in the amount credited back to the customer.