A document indicating a reduction in the amount due from a customer because of returned goods or an allowance granted is called a:
A) Debit Memo
B) Sales Return and Allowances Journal
C) Credit Memo
D) Sales Invoice
E) Uncollectible Account Authorization Form

Question

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A credit memo is issued to a customer to indicate a reduction in the amount due because of returned goods or an allowance granted.

A Document Indicating a Reduction in the Amount Due from a Customer