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When a customer returns goods, the retailer issues a:
ACash memo
BClient memo
CCosting memo
DCredit memo
Answer & Solution
Correct answer: D. Credit memo
1. The contract has changed and receivables must fall.
2. A document records that acknowledgement.
3. That document is a credit memo.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
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