If a customer has a balance for an amount owed and a return is made, a credit memo is prepared and______ .
A)a refund check is issued
B)the amount of the return may be applied to the invoice for the original sale
C)the customer determines whether to apply the amount to the invoice for the sale or get a refund check
D)any of the above

Question

Quizplus · Accepted Answer

A credit memo is typically used to apply the amount of the return to the invoice for the original sale, reducing the amount owed by the customer.

If a Customer Has a Balance for an Amount Owed