Is purchase returns a debit or credit in the trial balance?

Answer:

Purchase returns, also known as return outbound, are a procedure in which goods purchased are returned to the supplier due to defects or damage, a different color type, complex products, goods not ordered, late delivery, and other reasons.

As a result, the supplier will collect the items and make the necessary adjustments in their accounting and ledgers to ensure that the total returns are maximized.

The purchase returns account frequently has a credit balance in the books. As a result, the credit balance in the purchase account will be offset by the debit balance. 

Purchase refunds lower the business’s expenses and are thus recorded on the trial balance’s credit side.