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Question

Difficulty: MediumCommercial Documents in Home Trade

A wholesaler dispatched goods valued at ₦150,000 to a retailer but accidentally billed the retailer ₦135,000 on the commercial invoice. Which commercial document will the wholesaler issue to rectify this undercharge?

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

Answer

A Debit Note
A Debit Note is sent by a seller to notify the buyer that their account balance has been increased to rectify an undercharge on a previously issued invoice.

Step-by-Step Solution

1
Identify the financial transaction discrepancy.
The retailer was billed ₦135,000 instead of ₦150,000, creating an undercharge of ₦15,000.
The seller needs to collect the remaining unpaid balance from the customer.
2
Determine the commercial document used to increase a customer's account debt in home trade.
A Debit Note is selected.
A Debit Note informs the buyer that their account has been debited for an additional amount to correct an undercharge.

Key Concept

Debit Note function in Home Trade
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Topics

Commercial Documents in Home Trade

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