Recording purchase returns in buyer's books

Steps:

• Identify roles: Omar is supplier, Miriam is buyer who returned goods.
• Recognize transaction: Credit note from supplier indicates purchase return for buyer.
• Apply double-entry: Debit supplier's account (Omar) to reduce liability; credit purchases returns to decrease expenses.
• Match to choices: Entry is "Omar purchases returns" (debit Omar, credit purchases returns).

Why C is correct:

• In buyer's accounting, credit notes for returns debit the supplier's account and credit the purchases returns account, per double-entry principles.

Why the others are wrong:

• A: Reverses accounts, incorrectly crediting Omar instead of debiting.
• B: Includes sales returns, which records seller's returns, not buyer's.
• D: Mentions Miriam and sales returns, irrelevant to buyer's purchase return.

Final answer: C