Instead of paying for goods purchased on account, Olympic Corp. returned these goods to the supplier. Olympic should record this transaction by debiting Accounts Payable and crediting Sales Returns and Allowances.

Question

Quizplus · Accepted Answer

Olympic should debit Accounts Payable and credit Inventory, not Sales Returns and Allowances, as the transaction involves returning goods to the supplier, not a customer return.

Instead of Paying for Goods Purchased on Account, Olympic Corp