What is the entry to record the return of goods to a supplier under the perpetual inventory system, including GST?

Question

Quizplus · Accepted Answer

When goods are returned to a supplier, accounts payable is debited to reduce the liability to the supplier, inventory is credited to reduce the amount of inventory on hand, and GST outlays are credited to reduce the tax paid on the original purchase. Therefore, the correct entry is to debit accounts payable, credit inventory, and credit GST outlays.

What Is the Entry to Record the Return of Goods