What Is a Credit Memo

Multiple Choice

What is a credit memo?

A) A form stating the particulars of a credit to accounts receivable, including the specific items returned, prices, and amount credited to a customer's account
B) A document used to record adjustments such as a provision for bad debt expense or an accounts receivable write-off in the general ledger
C) A report prepared on the receipt of goods from customers showing the kinds and quantities of goods received
D) A form showing the description, quantity, and other data pertaining to goods the customer is authorized to return