Accounting for IGCSE & O level - Accounting Procedures (Section 18 - No. 37)

A company’s Purchases Ledger Control Account has a credit balance of $50,000. The company returns defective goods to a supplier worth $5,000. What is the new balance?
$45,000 (debit)
$45,000 (credit)
$55,000 (debit)
$55,000 (credit)

Explanation

The goods returned reduce the amount owed to the supplier.

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