Which of the following information is recorded in the returns outwards book?
-
A.
goods purchased on credit and susequently returned to suppliers -
B.
fixed asset bought on credit and subsequently returned to supplier -
C.
cash payment received from a customer and subsequently returned to supplier -
D.
goods sold to a customer and subsequently returned to the business
Correct Answer: Option A
Explanation
Returns outwards are goods returned by the customer or business to the supplier. For the supplier, this results in the following accounting transaction: A debit (reduction) in revenue in the amount credited back to the customer.