In a periodic inventory system, a return of defective merchandise to a supplier is recorded by crediting

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In a periodic inventory system, the return of defective merchandise to a supplier is recorded by crediting the Purchase Returns and Allowances account, which is a contra account to Purchases. This account is used to record the return of goods that are defective or not as ordered, resulting in a reduction in the amount owed to the supplier.

In a Periodic Inventory System, a Return of Defective Merchandise