Accounting for IGCSE & O level - Accounting Procedures (Section 5 - No. 18)

What entry should be recorded in the purchases ledger after a supplier issues a credit note?
Debit the supplier’s account.
Credit the supplier’s account.
Debit the purchases account.
Credit the cash account.

Explanation

A credit note reduces the amount owed to a supplier, so their account balance should be debited.

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