Which of the following statements is true regarding vendor credits?

The statement that vendor credits show a rebate from a vendor and may apply to payables is accurate because vendor credits represent reductions in what you owe to a vendor. They generally arise from situations such as returns of goods or services, allowances, or rebates that the vendor provides to the buyer, thus decreasing the overall amount the buyer has to pay. When vendor credits are recorded in accounting systems like NetSuite, they can subsequently be applied against open bills or payables, which helps in managing accounts payable effectively.

This facilitates a direct financial adjustment in the company's accounting, ensuring that they are only liable for the correct amounts owed to vendors after considering any credits or allowances. This understanding is critical for maintaining accurate financial records and managing vendor relationships effectively.