Accounting WAEC

Which of the following information is recorded in the returns outwards book?

A. goods purchased on credit and subsequently returned to suppliers
B. fixed asset bought on credit and subsequently returned to the supplier
C. cash payment received from a customer and subsequently returned to the supplier
D. goods sold to a customer and subsequently returned to the business

Correct Answer: Option A

A. goods purchased on credit and subsequently returned to suppliers

Explanation

Returns outwards are goods returned by the customer or business to the supplier. For the supplier, this results in the following accounting transaction: A debit (reduction) in revenue in the amount credited back to the customer.

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