carter purchased goods from miller which were found to be faulty. what is the double entry in carter’s accounting record to account for the return of those goods ? a. debit:purchase returns Credit:accounts payable b. Debit :accounts payable and Credit:purchase returns
in my head i worked it out as debit account payable as carter doesnt owe that money anymore and account payable in a liability account and decrease in liability is a debit entry. and credit purchase returns account . so that b but according to the book its a. i know its very basic but i dont know what am i missing here . any help would be appreciated thanks