PRC-1 · Chapter 2 · Question 8 of 100
'Lunar Boutiques' returned defective inventory to its supplier, 'Fabric World'. Which document does 'Lunar Boutiques' receive from the supplier to confirm this return?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit note
Explanation
When a business returns goods to a credit supplier, the supplier issues a credit note back to the business. This document serves as the source for the business's purchases returns (return outwards) day book.
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