Question

If Holiboards returned $2750 of snowboards to a supplier, which of the following entries would be used to record the transaction?

a) Debit Accounts Payable $2750; Credit Cash $2750
b) Debit Accounts Receivable $2750; Credit Cash $2750
c) Debit Inventory $2750; Credit Accounts Payable $2750
d) Debit Cash $2750; Credit Inventory $2750

Answer 1

The correct entry to record the return of $2750 of snowboards to a supplier would be a debit to Accounts Payable and a credit to Cash.

Step-by-step explanation:

The correct entry to record the return of $2750 of snowboards to a supplier would be:

Debit Accounts Payable $2750; Credit Cash $2750.

This entry reflects the fact that the accounts payable to the supplier are being reduced, and the company is receiving cash in return.