A client's failure to record a credit note could result from:
A) improper recording of sales returns.
B) improper recording of sales allowances.
C) timing differences.
D) all of the above

Question

Quizplus · Accepted Answer

A credit note represents a reduction in accounts receivable, which can occur due to sales returns or allowances, or timing differences. Improper recording of any of these can result in failure to record a credit note. Therefore, all of the above options can lead to this issue.

A Client's Failure to Record a Credit Note Could Result