When a customer returns goods a statement called " ________" is sent to him. This informs the customer that his account has been credited to the extent of value of the goods returned.

discount note

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cash sales note

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debit note

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credit note

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Solution

The correct option is D credit note
A credit note or credit memorandum is a commercial document issued by a seller to a buyer. Credit notes act as a Source document for the Sales return journal. In other words the credit note is evidence of the reduction in sales.

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Similar questions

Q. While returning goods to the suppliers, a statement called "_________" which is sent to them for their information. It informs the supplier that his account has been debited to the extent of the value of the goods returned, it contains the name and address of the supplier, the description of the goods returned etc.

Q. A company sells goods on credit valued at Rs.

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to a customer. At what point in the sales cycle should this sale be recognized in the accounts?

Q. A company sells goods on credit valued at Rs 25000 to a customer. At what point in the sales cycle should this sale be recognized in the accounts?

Q. A Customer returning the goods purchased on credit, may inform the seller by sending _______________.

An accountant, while balancing his books found that there was a difference of Rs. 85.95 in the trial balance. Being required to prepare the final accounts, he placed this difference to a newly opened suspense account which was carried forward to the next year, when the follwing errors were discovered.

(i) Goods bought from a merchant for Rs. 5.50 had been posted to the credit of his account as Rs. 55.

(ii) An item of Rs. 10.62 entered in the sales return book had been posted to the debit of the customer who returned the goods.

(iii) Rs. 60 owing by a customer had been omitted from the schedule of sundry debtors.

(iv) Rs. 2.31 discount received from a creditor had been duly entered in his account but not posted to discount received account.

Give journal entries necessary to correct these errors and prepare the suspense account.

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When a customer returns goods a statement called " ________" is sent to him. This informs the customer that his account has been credited to the extent of value of the goods returned.

The correct option is D credit noteA credit note or credit memorandum is a commercial document issued by a seller to a buyer. Credit notes act as a Source document for the Sales return journal. In other words the credit note is evidence of the reduction in sales.

The correct option is D credit note
A credit note or credit memorandum is a commercial document issued by a seller to a buyer. Credit notes act as a Source document for the Sales return journal. In other words the credit note is evidence of the reduction in sales.