When goods are returned by buyer to seller, supplier sends a credit note.

True

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False

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Solution

The correct option is A True
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 in other words, a receipt given by a shop to a customer who has returned goods, which can be offset against future purchases.

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Similar questions

When a buyer returns goods to the seller, he sends a _______ as intimation to the seller of the amount and quantity being returned and requesting the return of money. Whereas when a Seller receives goods (returned) from the buyer, he prepares and sends a _______ as intimation to the buyer showing that the money for the related goods is being returned in the form of a credit note.

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

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

Q. Which among the following situation will best explain about issuing debit note to a customer:
A) When the amount payable by buyer to seller increases.
B) Return of goods due to bad quality.
C) When the amount payable by buyer to seller decreases.
D) Goods delivered has charged an extra price.

Q. A __________ issued by buyer to seller giving full details of goods returned.

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