Final answer:
A debit memo is the document prepared when purchased items are returned, indicating that the seller owes the buyer and the seller's account has been debited.
Step-by-step explanation:
The document prepared when purchased items are returned is known as a debit memo. This is a document issued by a buyer to the seller, indicating the amount that the seller owes to the buyer. The buyer could be returning items that were damaged or incorrect, or perhaps they were overcharged for the goods. The debit memo serves as a notice that the seller's account has been debited in the buyer's accounting records. It's not to be confused with an invoice, which is issued by the seller to request payment from the buyer, or a receiving report, which is used to acknowledge the receipt of goods, nor is it a shipping notice, which informs the recipient of the details regarding the shipment of goods.