Accounting for IGCSE & O level - Accounting Procedures (Section 17 - No. 41)

What is the appropriate journal entry to record a return of goods to a supplier?

Debit Purchases Returns, Credit Supplier Account

Credit Purchases Returns, Debit Supplier Account

Debit Purchases, Credit Supplier Account

Credit Purchases, Debit Supplier Account

Returning goods to a supplier reduces the amount owed to them. Therefore, Purchases Returns is debited and Supplier Account is credited.