Credit Memo

Accounting Terms Dictionary

Select a letter below to view all accounting terms that begin with that letter.

Credit Memo

A credit memo is a short way of saying credit memorandum. It is a document verifying that the seller has reduced the buyer’s bill.

If John returned $36 worth of goods, he would be issued a credit memo for $36. He would journalize that by debiting Accounts Payable and crediting Purchase Returns. If John was using perpetual inventory he would make the credit to merchandise inventory.

There is currently no content classified with this term.

Get instant access to step-by-step instructions on how to apply and sit for the CPA Exam.

Expected or Past Undergrad Graduation Date*

When Do You Plan to Start Studying?