In the accounts of X, which of the following double entries is the correct way to record goods returned to Y, a credit supplier?

Question

Quizplus · Accepted Answer

When goods are returned to a credit supplier, the correct double entry is to debit the supplier's account (Y's account in this case) because the amount owed to the supplier decreases. The credit entry goes to Returns Outward (also known as Purchase Returns) to reflect the reduction in purchases.

In the Accounts of X, Which of the Following Double