passwella.
Menu

WAEC Commerce 1997 Question 58

Question 58

Purchase and Sale of Goods

A carton of spoons valued at N3,000.00 was invoiced at N300 only. Which of the following documents would be used by the seller to correct the error?

  1. A.A credit note for N3,300.00
  2. B.A debit note for N3,000.00
  3. C.A credit note for N2,700.00
  4. D.An invoice for N300.00
  5. E.A debit note for N2,700.00
Show the answer and explanation

Answer: E (A debit note for N2,700.00)

Explanation

The buyer was undercharged by N3,000 − N300 = N2,700, so the seller sends a debit note for N2,700.