A purchase return of goods purchased on credit is recorded by the purchasing firm as a debit to what account?
A)Inventory
B)Cost of sales
C)Accounts payable
D)Accounts receivable

Question

Quizplus · Accepted Answer

A purchase return involves returning goods previously purchased on credit, reducing the amount owed to the supplier. Therefore, the purchasing firm should debit the accounts payable account to reflect this reduction in the amount owed to the supplier.

A Purchase Return of Goods Purchased on Credit Is Recorded