A purchase return of goods purchased on credit is recorded by the purchasing company as a debit to what account?
A.) Inventory
B.) Cost of goods sold
C.) Accounts Payable
D.) Accounts Receivable

Think about the orginial transaction. The journal entry would have been a Debit to Inventory and a Credit to Accounts Payable.

Now, since you know what the original journal entry was you should be able to answer your question.