PRC-1 · Chapter 2 · Question 60 of 100
When 'Titanium Electronics' receives goods returned by a disappointed customer, which source document does 'Titanium' generate to acknowledge the return and update its Sales Returns Day Book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit note
Explanation
A seller issues a credit note to a customer who has returned goods. This document confirms the reduction in the customer's debt and acts as the source document for the Sales Returns Day Book.
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