Merchandise was returned to a supplier. The goods were previously purchased on account. The goods had not been paid for and there were no discounts. Assuming a periodic system, what journal entry is needed by the purchaser to record the return? Question 3 options: Debit Accounts Payable, and Credit Inventory. Debit Accounts Payable, and Credit Purchase Returns and Allowances. Debit Accounts Payable, and Credit Purchases. Debit Accounts Payable, and Credit Purchase Discounts.

Question

Kimberly

Business

10 October, 01:45

Merchandise was returned to a supplier. The goods were previously purchased on account. The goods had not been paid for and there were no discounts. Assuming a periodic system, what journal entry is needed by the purchaser to record the return? Question 3 options: Debit Accounts Payable, and Credit Inventory. Debit Accounts Payable, and Credit Purchase Returns and Allowances. Debit Accounts Payable, and Credit Purchases. Debit Accounts Payable, and Credit Purchase Discounts.

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Answers (1)

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Xzavier Keller · Answer 1

Debit Accounts Payable, and Credit Purchase Returns and Allowances

Explanation:

The adjusting entry is shown below:

Account Payable A/c Dr

To Purchase Returns and Allowances

(Being return of goods is recorded)

Since the goods are purchased on credit, and due to some issues the goods are returned So, the account payable account should be debited and the purchase return and allowances should be credited.