This document notifies that the sellers account needs to be debited given goods are returned by buyer to the seller. A debit note in accounting means a document issued by the buyer of goods or services to the seller.
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Furthermore this document informs the seller about the amount and quantity of goods returned Thus such a note is an intimation to the seller for returning.
. Debit note journal entry. Sometimes the bank also uses the debit note to decrease the balance of the companys bank account. For example the bank may issue the debit note to charge against the companys account as the fee of handling the NSF check.
In this case the balance of the companys bank account will decrease by the charged amount.
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