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Accumulated Profits and Losses

When a custom...

Question

When a customer returns the goods ____________.

A

An invoice is sent to him

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B

A debit note is sent to him

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C

A credit note is sent to him

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D

None of above.

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Solution

The correct option is C A credit note is sent to him
A credit note is a commercial document issued by a seller to a buyer. Credit note acts as a source document for the sales return journal. In other words credit note is evidence of reduction in sales. It is a receipt given to the customer who has returned goods, which can be offset against future purchase.

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