need help with accounting

Accounting
Tutor: None Selected Time limit: 1 Day

The normal balance for Purchases Returns and Allowances is
 
A. a debit.
 
B. a credit.
 
D. It doesn’t have a normal balance.

Apr 26th, 2015

A. A debit.

When there is a purchase return, it's a 2 part transaction. Inventory is debited (we get it back) and cost of goods sold is credited (wasn't really an expense so we adjust). The other part is we debit purchase returns (contra revenue account) and credit accounts receivable, because they do not owe us that money anymore.

Apr 26th, 2015

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Apr 26th, 2015
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Apr 26th, 2015
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