Explain what a debit memorandum is by completing the following sentence. When a buyer returns or takes an allowance on merchandise, the (buyer/creditor/seller) issues a debit memorandum to inform the (buyer/creditor/seller) of a debit made to the seller's account in the buyer's records.

buyer; seller

Explanation:

A "debit memorandum" is also known as a "debit memo." It is often a notification to the buyer or customer that debit adjustments were made to their bank accounts.

However, if the buyer returns the goods to the seller due to any reasons (such as damaged goods or incorrect goods), the buyer issues the debit memo. This will notify the seller that a debit has been made to his account in the buyer's records. It also means that the buyer is requesting for a return of funds from the seller.

So, this explains the answer.