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    shrksndngr's Avatar
    shrksndngr Posts: 3, Reputation: 1
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    #1

    Jan 30, 2011, 09:50 PM
    Journalizing purchase returns
    If I return defective merchandise and accept a credit against future purchases from Company X what accounts do I use other than Merchandise Inventory?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jan 31, 2011, 09:09 AM

    Your Debit will be to Accounts Payable for the amont of returned merchandise and your Credit will be to Purchase Returns and Allowances for the amount returned.
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