To record a return of merchandise purchased on credit on the books of the buyer,the accountant would
A) debit Purchases Returns and Allowances and credit Accounts Receivable.
B) debit Purchases Returns and Allowances and credit Purchases.
C) debit Accounts Payable and credit Purchases Returns and Allowances.
D) debit Purchases and credit Purchases Returns and Allowances.

Question

Quizplus · Accepted Answer

When merchandise is returned, the buyer reduces their liability by debiting Accounts Payable and recognizes the return by crediting Purchases Returns and Allowances.

To Record a Return of Merchandise Purchased on Credit on the Books