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    mmcckc's Avatar
    mmcckc Posts: 1, Reputation: 1
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    #1

    Nov 2, 2012, 06:15 PM
    Free accounting help
    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
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Nov 3, 2012, 08:30 AM
    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.
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