Zoey Products bought goods from Lily Company. The next day, Zoey Products returned the goods because they had a defect. Zoey Products would record this:

Question

Quizplus · Accepted Answer

Zoey Products would record the return of the goods as a purchase return because they are returning the goods to the supplier due to a defect. A debit memorandum is a document used to record a reduction in the amount owed to a supplier, but in this case, Zoey Products is returning the entire item. A sales memorandum, purchase discount, and abnormal sale are not applicable in this situation.

Zoey Products Bought Goods from Lily Company