When a company purchases supplies on account for let's say 1000 but returned a portion and 'received full cost' for it and they get like 700, how does this affect the balance sheet. For the current assets are the supplies now only 300? What happens to the account receivable? And for the current liabilites, the company should have had an account payable of 1000 ,is the 700 also deducted rom here leaving only 300 for account payable?

When you say they got full cost for it, are they getting a reduction in the amount due versus a cash refund? I would think that is the case if they haven't paid for the supplies. If so, you $300 account payable balance is correct.

The $700 of supplies are a reduction of what is on hand, so you are correct that the current assets (Supplies) are reduced by $700. Accounts Receivable are not affected.

Thank you :) I think they are getting a reduction in the amount due because the question says 'Returned portion of supplies, receiving full credit for cost'.

I think you are right. That makes sense. :)

Thanks again :)