How to record these bookkeeping transactions?

First one:

Customer returned $600 (retail price) of inventory for credit to its account; the cost of inventory returned was $360

Second one:

Returned $360 of defective inventory to supplier for credit to Zu Company's account and reduced the inventory account

First one to be complete & accurate will be Ideal Answer

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Answer:
1) credit accounts receivable (customer account), debit sales returns for $600;

debit inventory, credit cost of goods sold for $360

2) debit accounts payable (Zu Company) account, credit inventory for $360

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Answer:
I misunderstood. The transaction wouldn’t change, but you would debit the specific vendor's accounts payable account. So replace (Zu Company) in my answer with that vendor's name, the rest is the same. Report Abuse

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