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WAEC Commerce 1999 Question 21

Question 21

Purchase and Sale of Goods

What is the purpose of a debit note? To

  1. A.reduce the credit in the buyer's account
  2. B.reduce the debit charged to an invoice
  3. C.compensate for damaged goods returned
  4. D.allow for a rebate
Show the answer and explanation

Answer: A (reduce the credit in the buyer's account)

Explanation

A debit note corrects an undercharge, so it adds to what the buyer owes; reducing debits, returns and rebates are done with a credit note.