Bonita Industries purchased $5,000 of merchandise on account for resale purposes.Bonita plans to sell the merchandise for $7,500.If Bonita returned $1,000 of merchandise for credit,the journal entry to record the return would include a:

Question

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When merchandise is returned to a supplier, the buyer (in this case, Bonita Industries) reduces the amount owed to the supplier. This is recorded by debiting (reducing) Accounts Payable, reflecting a decrease in the liability owed to the supplier due to the return of merchandise.

Bonita Industries Purchased $5,000 of Merchandise on Account for Resale