The correct answer is: D. Sales return.
A credit note is a document issued by a seller to a buyer to acknowledge the return of goods or a reduction in the amount owed for goods. It is used to record a decrease in the buyer’s account balance.
A purchase is the act of acquiring goods or services from a supplier. It is recorded in the buyer’s accounting system as a debit to the purchases account and a credit to the accounts payable account.
A sale is the act of selling goods or services to a customer. It is recorded in the seller’s accounting system as a debit to the accounts receivable account and a credit to the sales account.
A purchase return is the act of returning goods to a supplier after they have been purchased. It is recorded in the buyer’s accounting system as a debit to the accounts payable account and a credit to the purchases returns and allowances account.
A sales return is the act of returning goods to a customer after they have been sold. It is recorded in the seller’s accounting system as a debit to the sales returns and allowances account and a credit to the accounts receivable account.