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      Question

      A Credit Note is the basis for recording a transaction

      in which of the following?
      A Purchase Journal Correct Answer Incorrect Answer
      B Sales Journal Correct Answer Incorrect Answer
      C Purchase Return Journal Correct Answer Incorrect Answer
      D Sales Return Journal Correct Answer Incorrect Answer
      E Cash book Correct Answer Incorrect Answer

      Solution

      Credit note is used to record the transaction related to sales returned whereas a debit note is prepared when the goods are returned and is sent to the supplier with the returned goods.

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