Question on: WAEC Accounting - 2014
Which of the following information is recorded in the returns outwards book?
A
goods purchased on credit and susequently returned to suppliers
B
fixed asset bought on credit and subsequently returned to supplier
C
cash payment received from a customer and subsequently returned to supplier
D
goods sold to a customer and subsequently returned to the business
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Correct Option: A
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.
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