Question on: WAEC Accounting - 2015
Goods returned to a supplier is
A
Debited to returns outward account
B
Credited to returns outwards account
C
Debited to returns inwards account
D
Credited to returns inwards account
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Correct Option: B
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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