How would you enter a purchase return of an inventory item in the purchases journal-

Question

Quizplus · Accepted Answer

Recording a negative quantity in the quantity column is the most appropriate way to show a purchase return in the purchases journal. This reduces the total quantity of the inventory item in the journal, thereby reflecting the return. Negative amounts in the price column or adding a negative sign in front of the item number could cause confusion and inaccuracies in the records.

How Would You Enter a Purchase Return of an Inventory