A customers who returns goods to the supplier because they are detective is issued a

Assessment: WAEC SSCE - Financial Accounting - 2006 (Objective) Subject: Financial Accounting

Question 1 Report

A customers who returns goods to the supplier because they are detective is issued a
Answer Details
A customer who returns goods to the supplier because they are defective is issued a "credit note". A credit note is a document that a seller issues to a buyer when goods are returned or a refund is due. In the case of a defective product, the customer can return the item to the supplier and request a credit note for the value of the item. The credit note serves as a form of credit to the customer's account, reducing the amount they owe to the supplier. It is also used as evidence of the transaction and is recorded in the supplier's accounts. On the other hand, a debit note is used when the supplier needs to bill the customer for additional charges, such as for additional goods or services provided. A delivery note is used to confirm that goods have been delivered to the customer, while a bank note is a type of currency issued by a central bank.

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