The entry to record the return of $300 of supplies purchased on account would be:
A) $\begin{array} { | c | r | r | }
\hline \text { Cash } & 300 & \
\hline \text { Supplies } & & 300 \
\hline
\end{array}$
B) $\begin{array} { | c | r | r | }
\hline \text { Supplies } & 300 & \
\hline \text { Accounts Payable } & & 300 \
\hline
\end{array}$
C) $\begin{array} { | c | r | r | }
\hline \text { Accounts Payable } & 300 & \
\hline \text { Supplies } & & 300 \
\hline
\end{array}$
D) $\begin{array} { | c | r | r | }
\hline \text { Accounts Payable } & 300 & \
\hline \text { Capital } & & 300 \
\hline
\end{array}$

Question

The entry to record the return of $300 of supplies purchased on account would be:
A) $\begin{array} { | c | r | r | } 
\hline \text { Cash } & 300 & \
\hline \text { Supplies } & & 300 \
\hline
\end{array}$
B) $\begin{array} { | c | r | r | } 
\hline \text { Supplies } & 300 & \
\hline \text { Accounts Payable } & & 300 \
\hline
\end{array}$
C) $\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 300 & \
\hline \text { Supplies } & & 300 \
\hline
\end{array}$
D) $\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 300 & \
\hline \text { Capital } & & 300 \
\hline
\end{array}$

Quizplus · Accepted Answer

The return of supplies purchased on account decreases the liability (Accounts Payable) and decreases the asset (Supplies), so Accounts Payable is debited and Supplies is credited.

The Entry to Record the Return of $300 of Supplies Cash 300 Supplies 300\begin{array} { | c | r | r | } \hline \text { Cash } & 300 & \\\hline \text { Supplies } & & 300 \\\hline\end{array} Cash Supplies ​300​300​​

The Entry to Record the Return of $300 of Supplies $\begin{array} { | c | r | r | } \hline \text { Cash } & 300 & \\\hline \text { Supplies } & & 300 \\\hline\end{array}$