Concept:A credit note is issued by the seller to the buyer for returned goods. It reduces the amount the buyer owes to the seller.
Explanation:Bayo is the seller because he issued the credit note to Ayo.
Ayo returned defective goods, so this transaction is a sales return in Bayo's books.
This sales return reduces the amount receivable from Ayo.
In Bayo's books, the total amount owed by customers is recorded in the sales ledger control account.
When the amount owed by customers decreases, the sales ledger control account must be credited.
Therefore, the credit note will appear on the credit side of the sales ledger control account.
Answer:B. credit side of the sales ledger control account.