Page 11 Chapter 2

CHAPTER 2
Selling Goods and Services

EXAM TIP!

Make sure you check that your answer is reasonable. Many students have lost
marks simply because they have pushed the wrong button on their calculator.

It's a good idea to have some idea of what figure you are expecting as an answer.
Don't give a discount that is more than the goods and make sure your answer
'looks' about right.

Other documents relating to sales

Let us suppose that R Patel (from earlier in this chapter) receives his dress material but two
of the rolls have a flaw in them. Mr Patel will not want to pay for the faulty goods so he will
inform Dawson Supplies that he no longer wants these rolls as they are faulty. In Dawson
Supplies’ books it will still be showing that R Patel owes £3375.00 (plus the VAT).
(Remember that the goods have not yet been paid for). The rolls will probably be sent back
with a returns note.

R PATEL

132 Anglian Way, Norwich, NR3 6FG
RETURNS NOTE
To
Dawson Supplies
45 Scartho Street
Immingham
IM15 2BH

Description of item(s) Quantity
Rolls of Blue Cotton Dress Material 2

REASON FOR RETURN: Faulty Goods
Signature Date:

When the goods have been received back, Dawson Supplies will raise a credit note. We
have seen that a credit note is a refund document stating that the customer no longer owes
part or all of the amount on an invoice. Why not just tear up the invoice? Well there are two
main reasons.

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