If merchandise sold on account is returned to the seller, the seller acknowledges the return by issuing a

A) sales invoice
B) purchase invoice
C) credit memo
D) debit memo

A credit memo is used by the seller to acknowledge the return of merchandise and to provide credit to the buyer's account. A sales invoice is used to record a sale, a purchase invoice is used to record a purchase, and a debit memo is used to notify the buyer of a debit to their account, such as for a returned check or an overpayment.