An original credit note will be used to record returns/rebates in the creditors allowances journal
True. The credit note is used to record the returns and rebates of an business enterprise. A credit note is issued by the seller to purchaser for the goods which are returned by the purchaser, reason can be damaged good or out dated, etc. The credit note can also be issued by the purchaser if the goods received are more than ordered. This note is also prepared when their is less payment to any party. The credit note is the source of document under credit allowances journal.
Additional Information: Debit note is also issued under the credit allowance journal.
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