Which of the following transactions would you use to decrease the expected funds to be received from a customer?

Issuing a credit memo is a transactional action used to decrease the expected funds to be received from a customer. A credit memo serves as a formal document that acknowledges a reduction in the amount that the customer owes, typically due to reasons such as returned products, pricing adjustments, or discounts granted after an invoice has been issued.

When a credit memo is issued, it effectively acts as a counterbalance to an existing invoice or accounts receivable, thereby decreasing the total amount payable by that customer. This adjustment is crucial for maintaining accurate financial records and aligned cash flow projections. It indicates to the accounting system that the previous amount expected to be collected must be lowered.

In contrast, other transactions like recording a customer payment or creating an invoice would either confirm funds being received or increase the amount owed, respectively. Receiving a returned order might indicate a product has been returned, but without issuing a credit memo, it would not directly affect the expected funds owed by the customer. Thus, credit memos are essential for reflected decreases in receivable amounts accurately.