Final answer:
An entity returning goods to a supplier can expect to receive a credit note, which serves to adjust the amount owed or provide a refund for the returned items.
Step-by-step explanation:
When an entity returns goods to a supplier, it will typically expect to receive a credit note from the supplier. A credit note is a document issued by a seller to a buyer, acknowledging that goods have been returned or that there is an overcharge on an invoice. This document serves as a way to reduce the amount that the buyer owes to the seller or to facilitate a refund for the value of the returned goods.
The credit note includes details such as the amount of credit, the reason for the issuance (e.g., returned goods), and the original invoice number. It is an important part of the accounting reconciliation process as it helps both parties keep accurate financial records.
When an entity returns goods to a supplier, it will expect to receive a credit note from the supplier.
A credit note is a document issued by the supplier to acknowledge the return of goods and to provide a credit or refund to the entity. It serves as evidence of the return and indicates the amount that will be credited back to the entity's account.
Unlike an invoice, which is a document issued by the supplier to request payment from the entity, a credit note is issued by the supplier to reverse the original transaction and adjust the entity's account accordingly.