Based on the returns to Starcraft, XYZ Inc., and Datamagic, the relevant journal entries are:
Date Account details Debit Credit
Jul Accounts Payable/ Starcraft Industries $560
Purchases returns and allowances $560
Date Account details Debit Credit
Jul 15 Accounts Payable/ XYZ, Inc. $400
Purchases returns and allowances $400
Date Account details Debit Credit
Jul 27 Accounts Payable/ Datamagic $900
Purchases returns and allowances $900
How do you account for purchase returns?
Purchase returns such as those to Starcraft, XYZ, and Datamagic, are to be debited to the Accounts Payable account to show that this amount is decreasing.
Purchases returns and allowances should then be credited to show that stock is decreasing.
Find out more on purchases returns at https://brainly.com/question/18686739.
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