Concept:Goods returned by customers to a branch increase branch stock and reduce the amount owed by branch debtors.
Explanation:When customers return goods, the branch receives the items back, so the value of stock rises.
This increase is recorded on the debit side of the branch stock account.
At the same time, the customers no longer owe for those returned goods, so the branch debtors' balance decreases.
A decrease in debtors is recorded on the credit side of the branch debtors' account.
Therefore, the correct double entry is: debit branch stock account and credit branch debtors' account.
This matches option C.
Answer:C. branch stock account and credit branch debtors' account.