JournaldrillPurchase return
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Sunrise Toy Shop bought merchandise on account last week and has not yet paid. Today it returns $750 of defective toys to the supplier and receives credit against its balance. Sunrise uses a perpetual inventory system.
What this exercise teaches
Returning goods reduces the amount owed to the supplier, so Accounts Payable is debited. The toys leave the shop, so Inventory is credited for $750. Sales Returns and Allowances is a seller's account and does not apply to the buyer.
A hint if you get stuck
The shop owes the supplier less and holds fewer goods, so reverse part of the original purchase.
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