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Difficulty: EasyCommercial Documents in Home Trade

A retail buyer returns a batch of damaged goods to a wholesaler shortly after delivery. Which commercial document will the wholesaler send to inform the buyer that their account debt has been reduced?

  1. Credit NoteAnswer
  2. B
    Debit Note
  3. C
    Advice Note
  4. D
    Delivery Note

Answer

Credit Note
A credit note is issued by a supplier to inform the buyer that their account balance has been credited (reduced) due to returned faulty goods or an overcharge.

Step-by-Step Solution

1
Identify the commercial transaction event
The buyer returns damaged goods to the seller.
Returning goods means the buyer no longer owes payment for those items.
2
Determine the appropriate document used to reduce indebtedness
The seller issues a Credit Note.
A Credit Note is sent by a seller to credit the buyer's account and reduce their total liability.

Key Concept

Credit Note function in home trade
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Topics

Commercial Documents in Home Trade

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