Which type of document represents money owed to an ARC accredited agency?

Which type of document represents money owed to an ARC accredited agency?

• A. Credit Memo
• B. Debit Memo
• C. Agent Automated Deduction
• D. Automated Deduction Document

Answer: (A)

A credit memo is used when there is a credit to the agency’s balance—money that ARC owes the agency, such as refunds, rebates, or positive adjustments. It reduces the agency’s liability and creates a credit on the agency’s account, meaning the agency is owed money. In contrast, a debit memo represents amounts the agency must pay to ARC. The other options are tools for automatic deductions and do not represent money owed to the agency.

A credit memo is used when there is a credit to the agency’s balance—money that ARC owes the agency, such as refunds, rebates, or positive adjustments. It reduces the agency’s liability and creates a credit on the agency’s account, meaning the agency is owed money. In contrast, a debit memo represents amounts the agency must pay to ARC. The other options are tools for automatic deductions and do not represent money owed to the agency.