What Are Purchases Returns
Goods or mercha ndise returned by the buyer to the seller, Accounts Payable (supplier) because the buyer finds goods unsatisfactory, or lower quality or damaged goods or wrong delivery of goods ordered, then he (buyer) sends a Debit Note to the seller that he debit the Accou nts Payable Account with the amount of goods returned to him. It is also called Purchase Returns Contra Expense Account . Purchases Returns Journal Entry Or Returned Merchandise Journal Entry Journal Entry For Returni ng Of Damaged Goods The buyer enters the following Journal Entry in the Purchase Return Book as shown below: Accounts Payable a/c XXX ...