General
Purchase Returns and Allowances
Returning defective raw materials to a supplier for a full credit.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Payable | Liability (-) | 1,200.00 | - |
| Inventory (or Purchase Returns) | Asset (-) | - | 1,200.00 |
💡 Accountant's Note
This reduces the amount you owe the vendor and adjusts your inventory balance for the returned items.
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