Question

how can you journalise this a supplier account had been debited with a $200 sales invoice (which had been correctly recorded in the sales account).​

Answer 1

Debit : Supplier $200

Credit : Purchases Returns and Allowances $200

Step-by-step explanation:

We normally debit the Supplier account when we want to reduce our entity`s liability.

We reduce the entity liability when :

1. The suppliers have been paid amount due to them
2. The entity has returned goods to suppliers

The above journal depicts a return of goods to suppliers from the entry view of the Customer.

The Supplier has to reduce their Sales Account with the same amount of $200, the value of the goods returned.