After Sally purchased $3,000 of merchandise from Bob, Sally discovered $800 of defective merchandise. Record the entry for the return.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

The entry for the return of defective merchandise would be a credit to the purchase account for $800 and a debit to accounts payable for $800. The correct journal entry is:
Accounts Payable  $800
Purchase Returns and Allowances    $800

After Sally Purchased $3,000 of Merchandise from Bob, Sally Discovered