PRC-1 · Chapter 2 · Question 7 of 100
A credit customer returns damaged goods to 'Summit Furnishings'. Which source document will 'Summit Furnishings' issue, and in which book will it be recorded?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Credit note; Sales returns day book
Explanation
When a customer returns goods, the seller issues a credit note to acknowledge the reduction in the amount owed. This transaction is then recorded in the seller's sales returns (return inwards) day book.
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