A credit balance in a customer's account in the debtors' ledger could be due to:
A) increased credit sales in the period.
B) an overpayment by the customer.
C) a bad debt.
D) return of goods purchased by the customer.

Question

Quizplus · Accepted Answer

A credit balance in a customer's account in the debtors' ledger is an indication that the customer has paid more than what is due. It could be because of an overpayment by the customer. Increased credit sales, bad debts or return of goods purchased would not result in a credit balance in the customer's account.

A Credit Balance in a Customer's Account in the Debtors