PRC-1 · Chapter 2 · Question 22 of 100
Which of the following transactions would exclusively be entered into the Purchases Returns Day Book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Returning damaged trading inventory previously bought on credit.
Explanation
The purchases returns day book strictly records the return of trading inventory previously bought on credit. Returning a non-current asset is recorded in the General Journal.
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