ICAEW AF · Chapter 3 · Question 1 of 11
A business accepts goods back from a credit customer because they were faulty. Which source document will the business issue to the customer?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A credit note
Explanation
A credit note is issued to a customer to reduce the amount the customer owes, for example when goods are returned. Credit notes issued are recorded in the sales returns day book. A remittance advice accompanies a payment, and a goods received note is an internal record of goods coming in from suppliers.
More Double entry, books of prime entry and the trial balance MCQs
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- Q4A sole trader takes goods that cost the business £640 for personal use. What is the double entry to record this?
- Q5A business's bank account in the general ledger had a debit balance of £2,350 at the start of the month. During the month, receipts of…
- Q6The following balances have been extracted from the ledger of a sole trader at the year end: Non-current assets £48,000 Inventory £6,200…
- Q7Which of the following errors would cause the totals of a trial balance to disagree?