BMC Software Senior Sourcing Analyst Interview Questions and Answers

Journal entries for return outward involve recording the return of goods to suppliers.

• Return outward is recorded as a credit entry in the purchases returns account.

• The corresponding debit entry is made in the accounts payable account.

• The journal entry reduces the amount owed to the supplier for the returned goods.

• Example: Debit Accounts Payable, Credit Purchases Returns.