Which source document provides evidence of a sales return?

Question

BlackTom AI · Accepted Answer

Question restatement: Which source document provides evidence of a sales return? Answer options: a) Cheque butt, b) Memo, c) Invoice, d) Credit note.
Option a: Cheque butt. A cheque stub or cheque butt records payment details and is primarily a receipt of payment, not evidence of a return. It does not reflect a reversal of sale or a returned item. 
Option b: Memo. A memo is a brief note or internal communication and is not a standard documentary evidence of a sales reversal or return in accounting. It lacks formal recognition of stock movement or adjustment in accounts receivable. 
Option c: Invoice. An invoice documents a sale and requests payment from the customer; it increases revenue and accounts receivable. It does not convey that a sale has been reversed or that goods were returned. 
Option d: Credit note. A credit note is a formal document issued by the seller to the buyer acknowledging a reduction in the amount payable, typically used to record areturned item, a refund, or an allowance. It serves as the documentary evidence that a sales return has occurred and adjusts both revenue and accounts receivable accordingly. 
Summary of misconceptions: The other documents relate to payments, internal notes, or original sales, not to the act of returning goods or granting a refund. The credit note uniquely represents the adjustment caused by a returned item and the corresponding decrease in what the customer owes.}

Which source document provides evidence of a sales return?

View Explanation

Log in for full answers

Similar Questions

What is used to provide input to the accounting process?

Which source document provides evidence of a sales return?

What is the purpose of a source document in the accounting process?

What is the purpose of a source document in the accounting process?

Which of the following is an accounting record used during the recording stage of the accounting process?

What is used to provide input to the accounting process?

Which of the following is an accounting record used during the recording stage of the accounting process?

The information to be processed by an accounting system, including supplier invoices, customer bills and sales receipts is called:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler