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Goods returned to a supplier is

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Accounts - Principles of Accounts WAEC 2015

Goods returned to a supplier is

  • Debited to returns outward account
  • Credited to returns outwards account checkmark
  • Debited to returns inwards account
  • Credited to returns inwards account

The correct answer is: B

Explanation

When merchandise purchased for cash are returned to supplier, we need to record two journal entries. In first entry we debit accounts receivable account and credit purchases returns and allowances account (returns outwards would ve credited because goods are going out of the business). This entry is made to recognize the return of merchandise.

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