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In this lecture, a credit memorandum is defined according to the 22nd edition of fundamental accounting principles. It is a notification from the issuer to the recipient that their account has been credited in the sender's records. For the customer, this means they owe money, but the company is decreasing the amount owed for various reasons. The term "credit" in the credit memorandum specifically refers to reducing the accounts receivable ledger for that customer. An example provided involves a customer purchasing inventory and issuing an IOU, leading to an increase in accounts receivable and sales, while inventory decreases.