Question 34
Purchase and Sale of GoodsZaico Ltd invoiced goods valued at N80,000 to Victory Ltd for N8,000. Which of the following will Zaico Ltd send to Victory Ltd to correct the error?
- A.Consignment note
- B.Credit note
- C.Advice note
- D.Debit note
- E.Statement
Show the answer and explanation
Answer: D (Debit note)
Explanation
Victory Ltd was undercharged by N72,000, so Zaico sends a debit note to increase the amount owed.