PRC-1 · Chapter 2 · Question 47 of 100
'Titanium Motors' returns defective spare parts to a supplier that were previously purchased on credit. Which document is received from the supplier, and in which book of prime entry is the event recorded?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Credit note; Purchases returns day book
Explanation
When goods are returned to a supplier, the supplier issues a credit note to confirm they have reduced the buyer's debt. The buyer records this document in their purchases returns (returns outward) day book.
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