Goods returned to a supplier is
Debited to returns outward account
Credited to returns outwards account
Debited to returns inwards account
Credited to returns inwards account
Correct answer is B
When merchandise purchased for cash are returned to supplier, we need to record two journal entries. In first entry we debit accounts receivable account and credit purchases returns and allowances account (returns outwards would ve credited because goods are going out of the business). This entry is made to recognize the return of merchandise.