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Which of the following information is recorded in the returns outwards book?

Which of the following information is recorded in the returns outwards book?
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  • A Goods purchased on credit and susequently returned to suppliers
  • B Fixed asset bought on credit and subsequently returned to supplier
  • C Cash payment received from a customer and subsequently returned to supplier
  • D Goods sold to a customer and subsequently returned to the business
Correct Answer: Option A
Explanation:
Returns outwards are goods returned by the customer or business to the supplier. For the supplier, this results in the following accounting transaction: A debit (reduction) in revenue in the amount credited back to the customer.

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