If I were to prepare a journal entry to record a transaction that involved a corporation purchasing photographic supplies during 2009 at a cost of $185,000, and $20,000 worth of the supplies had to be returned, what would be the journal entries?

Supplies                                                                                                    $185,000

Accounts Payable – Supply Company                                                                                   $185,000

Second, to record the return of supplies

Accounts Payable – Supply Company                                                     $20,000

Supplies                                                                                                                                 $20,000

Third, to record the cash payment on the credit purchase of supplies

Accounts Payable – Supply Company                                                     $165,000

Cash                                                                                                                                       $165,000