What is a credit memo?
A)A form stating the particulars of a credit to accounts receivable, including the specific items returned, prices, and amount credited to a customer's account
B)A document used to record adjustments such as a provision for bad debt expense or an accounts receivable write-off in the general ledger
C)A report prepared on the receipt of goods from customers showing the kinds and quantities of goods received
D)A form showing the description, quantity, and other data pertaining to goods the customer is authorized to return

Question

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A credit memo is a form that documents a credit issued to a customer's account. It includes details of the items returned, prices, and the amount credited. It serves as a record of the adjustment made to the customer's account balance.

What Is a Credit Memo