When a buyer has been overcharged for goods supplied, the seller issues a _______?
Answer Details
When a buyer has been overcharged for goods supplied, the seller issues a credit note.
A credit note is a document issued by a seller to a buyer that serves as a written record of a credit transaction. It is essentially a form of negative invoice that shows that the seller owes the buyer money rather than the other way around.
In the case of an overcharge, a seller will issue a credit note to the buyer as a way of acknowledging the mistake and providing a refund for the overpayment. The credit note typically includes information about the original transaction, such as the date and amount of the original invoice, as well as the reason for the credit note.
Credit notes are an important part of the sales and purchase process because they help to ensure that transactions are accurate and that any mistakes or discrepancies are promptly addressed. They are also useful for record-keeping and can be used as a reference in future transactions between the buyer and seller.