Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 7)
A business issues a credit note to a customer, what impact does this have on the customer's account in the sales ledger?
Increases the balance.
Decreases the balance.
Has no effect.
Affects only the control account.
Explanation
A credit note reduces the amount that a customer owes (due to a return or allowance), therefore the customer's account balance decreases.
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