Question

Note issued by seller on receipt of defective goods from customer __________.

• A. Credit note
• B. Cash memo
• C. Debit note
• D. Sales note

Answer 1

Answer: (A)

Credit note

A credit note is prepared on receipt of defective goods from customer by the seller. A credit note is a letter sent by the supplier to the customer notifying the customer that he or she has been credited a certain amount due to an error in the original invoice or other reasons. It is also called as "credit memo".