Question

Amitabh sell goods on credit to sarah
a.state why a credit note may later be issued
b. name the book of prime entry in which sarah would record a credit note from amitabh​

Answer 1

Answer:

a. Credit sales will increase the bad debt risk

b. Sales day book

Explanation:

a. Credit sales means selling goods on credit I.e. the goods will be given to the customer but the payment from them will be received later... so there may be a chance where the costimer May not be able to pay the money.. thiss will be considered a liability of any business.. it’s is a loss