What action does a supplier return refer to?

A supplier return specifically refers to the action of returning goods to a supplier. This process typically occurs when the goods received are defective, do not meet the agreed-upon specifications, or are simply no longer needed. In this context, it reflects a return of inventory, which may need to be accounted for in the financial records.

This concept is an essential part of inventory management and accounts payable, as it affects stock levels and the financial standing of the organization. By accurately documenting supplier returns, businesses ensure that their records reflect all transactions correctly, including adjustments to expenses and inventory levels.

The other actions described in the choices do not align with the definition of a supplier return. Paying a supplier bill refers to fulfilling a financial obligation for goods received, while receiving goods focuses on the acceptance of products into inventory rather than returning them. Issuing a credit involves a different financial transaction where a supplier credits your account instead of the physical return of goods.