ACCA Applied Knowledge · Financial Accounting · Double-entry bookkeeping principles including the maintenance of accounting records
A supplier sends a business a document reducing the amount owed because some goods delivered last month were returned as faulty. Which source document would the business expect to receive?
The business would receive a credit note from the supplier. It reduces the amount owed for returned faulty goods. A debit note is what the buyer sends to the supplier, while statements and goods received notes serve different purposes.
- ACredit noteCorrect
- BDebit note
- CStatement of account
- DGoods received note
Explanation
A credit note is issued by the supplier to reduce the amount the buyer owes for returned or faulty goods. A debit note is raised by the buyer to notify the supplier of the return, so it is not the document received from the supplier. A statement of account summarises balances, and a goods received note records delivery.
Did you get it right without looking?
One question tells you little. A timed set on Double-entry bookkeeping principles including the maintenance of accounting records shows your real accuracy, how long you take and where you lose marks.
More Double-entry bookkeeping principles including the maintenance of accounting records questions
- Orchid Ltd's receivables ledger control account has opening balance $20,000 debit. During the period: credit sales $85,000; cash received fr…
- A business receives $3,000 from a customer as a deposit for goods to be delivered next month. Under IFRS, which entry is correct on receipt?
- Which of the following account balances would normally be a credit balance in the general ledger of a trading entity?
- Nadir Co's trial balance extract at 30 June shows: sales $640,000; sales returns $15,000; opening inventory $48,000; purchases $410,000; pur…
- A business sells goods on credit for $9,000 plus sales tax at 20%, charged to the customer. What is the correct double entry?
- Which one of the following journal entries correctly records the write-off of an irrecoverable debt of $800, assuming no allowance for recei…