Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 47 - No. 50)
What might be a consequence if a business frequently issues debit notes instead of credit notes for sales returns?
An increase in trade receivables.
An underestimation of sales revenue.
An overestimation of sales revenue.
An increase in customer satisfaction
Explanation
Debit notes do not reduce amounts due. Issuing debit notes instead of credit notes for sales returns would falsely inflate the recorded revenue.
Comments (0)
