39. tonys tires returned merchandise that was purchased on account to tire warehouse, $1,400. the journal…

39. tonys tires returned merchandise that was purchased on account to tire warehouse, $1,400. the journal entry for tonys tires to record this transaction is: a. debit accounts payable/tire warehouse, $1,400; credit purchases returns and allowances, $1,400. b. debit accounts receivable/tire warehouse, $1,400; credit purchases returns and allowances, $1,400. c. debit purchases returns and allowances, $1,400; credit purchases, $1,400. d. debit purchases returns and allowances, $1,400; credit accounts payable/tire warehouse, $1,400.

39. tonys tires returned merchandise that was purchased on account to tire warehouse, $1,400. the journal entry for tonys tires to record this transaction is: a. debit accounts payable/tire warehouse, $1,400; credit purchases returns and allowances, $1,400. b. debit accounts receivable/tire warehouse, $1,400; credit purchases returns and allowances, $1,400. c. debit purchases returns and allowances, $1,400; credit purchases, $1,400. d. debit purchases returns and allowances, $1,400; credit accounts payable/tire warehouse, $1,400.

Answer

Brief Explanations:

When merchandise purchased on account is returned, the accounts - payable balance to the supplier (Tire Warehouse) decreases, so Accounts Payable is debited. Purchases Returns and Allowances is a contra - purchases account and is credited to record the return of merchandise.

Answer:

A. debit Accounts Payable/Tire Warehouse, $1,400; credit Purchases Returns and Allowances, $1,400.