Gmetrix QuickBooks Certified User (QBCU) Online Practice Exam

How do you issue a credit memo to a customer?

Create a Credit Memo from +New > Credit Memo; do not apply it. Apply a Credit Memo to the relevant invoice. Create a Credit Memo from +New > Credit Memo, apply it to the relevant invoice or issue a refund. Refund the customer directly without a credit memo.

Correct Answer:

Create a Credit Memo from +New > Credit Memo, apply it to the relevant invoice or issue a refund.

Explanation:

A credit memo is a record of a customer credit that reduces what they owe or is returned as cash. To issue one, you start by creating the credit memo from the +New menu. Once it's created, you can either apply it to the relevant invoice to decrease the amount due, or issue a refund if cash back is appropriate. This approach keeps the customer’s balance and your books accurate. Creating a credit memo without applying it leaves the credit unallocated, and issuing a refund without first documenting the credit misses the proper tracking in your records.

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