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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