PRC-1 · Chapter 3 · Question 30 of 100
When 'Velocity Logistics' receives a credit note from a supplier for returned defective goods, into which specific ledger is this individual transaction directly posted?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The debit side of the individual supplier's account in the Payables Ledger.
Explanation
A credit note received signifies a purchase return, which decreases the amount the business owes. To record this reduction in liability, the individual return is posted to the debit side of the specific supplier's account in the Payables Ledger.
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