Accounting for IGCSE & O level - Accounting Procedures (Section 15 - No. 31)
What is the effect of a credit note issued to a customer on their account balance?
Increases the balance.
Decreases the balance.
No effect on the balance.
Transfers the balance to the general ledger.
Explanation
A credit note lowers the amount owed by the customer. Thus, the account balance decreases.
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