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A credit note or credit memo is a commercial document issued by a seller to a buyer. Credit notes act as a source document for the sales return journal. In other words, the credit note is evidence of the reduction in sales. A credit memo, a contraction of the term "credit memorandum", is evidence of a reduction in the amount a buyer owes a seller under an earlier invoice.
It can also be a document from a bank to a depositor to indicate the depositor's balance is being in the event other than a deposit, such as the collection by the bank of the depositor's note receivable.
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