When a buyer returns damages goods to the seller, the buyer receives a

Assessment: WAEC SSCE - Financial Accounting - 1989 (Objective) Subject: Financial Accounting

Question 1 Report

When a buyer returns damages goods to the seller, the buyer receives a
Answer Details
When a buyer returns damaged goods to the seller, the seller issues a credit note to the buyer. A credit note is a document used to record a reduction in the amount owed by the buyer to the seller. It is a type of document that a seller issues to a buyer to indicate that the seller is crediting the buyer's account for the amount shown on the credit note. The credit note is issued when the goods are returned by the buyer to the seller due to damage or other reasons. The buyer can use the credit note to reduce the amount owed to the seller or to receive a refund. Therefore, option B, "credit note", is the correct answer.

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