Debit Notes

is it good to use debit note where credit note was used?

i bought some goods from my surplier & one of them was faulty so i return it & by then he did not have stock so, he passed credit note. what i want to know is should i do debit note in my system because that stock was already in the system but now i can not sell it. all i need to do is remove that stock from the system.

Public Comments

1. Well, since you returned the item, you need to credit your Merchandise Inventory account for that amount, and the debit is to your Accounts Payable to that supplier. (If you don't want to buy from that supplier again, they would still owe you the amount of the credit for the returned goods).