WHEN THE INVOICE OF A CUSTOMER IS OVERCAST, THE SUPPLIER WILL SEND TO HIM A

• A. debit note
• B. cheque
• C. credit note ✓
• D. payment voucher

The answer to the question is: C. credit note

When an invoice of a customer is overcast, the supplier will typically send a credit note to rectify the error. A credit note is a commercial document issued by a seller to a buyer, indicating that a certain amount has been credited to the buyer’s account. It serves as an acknowledgment of the reduction in the amount payable by the buyer to the seller due to various reasons such as overbilling, damaged goods, or any other discrepancies in the original invoice.

A credit note is used to adjust the amount owed by the customer and can be issued for various reasons including returns, discounts, or errors in billing. In the case of an overcast invoice, where the customer has been charged more than the actual amount owed, the supplier issues a credit note to reduce the outstanding balance. This allows for accurate accounting and ensures that both parties have a clear record of the transaction.

The issuance of a credit note is an important aspect of maintaining transparent and accurate financial records. It helps in resolving discrepancies and maintaining good relations between the buyer and seller. Additionally, it ensures that both parties are in agreement regarding the correct amount owed and paid for goods or services.

In conclusion, when an invoice of a customer is overcast, the supplier will send a credit note to rectify the error and adjust the amount owed by the customer.