PRC-1 · Chapter 2 · Question 88 of 100
'Saffron Boutique' issues a 'Debit Note' to a supplier. What is the logical next step that the supplier should take upon agreeing with the note?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Issue a Credit Note back to Saffron Boutique.
Explanation
A debit note sent to a supplier is a request to reduce liability. If the supplier agrees (e.g., they accept the goods were faulty), they will formalize the reduction by issuing a credit note.
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