A seller on receipt of returned goods sends note to the party who return the goods, the note is called _____.

Debit note

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Credit note

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Refund note

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Return note

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Solution

The correct option is B Credit note
A credit note is prepared, when a party is to be given a credit for reasons other than credit purchase. It is common practice to make it in red ink. When goods are received back from a customer, a credit note is sent to him. It is a document sent by a seller to the buyer.
In other words, it is a note prepared by vendor to the purchaser, notifying that a credit has been made to their account against the goods returned by the buyer.

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