. The form issued by a seller to inform a buyer that a credit has been made to accounts receivable. 2. Under the periodic system, it is the account credited when the proprietor withdraws merchandise for personal use. 3.. It is the amount of reduction allowable from the list price of goods offered for sale. 4. This is computed by deducting returns and allowances and partial payments from the invoice cost. Choices Sales Purchase invoice Purchase discount Debit memo Trade discount Drawing Trade - In Capital Purchase Allowances Sales Invoice Credit memo Cash discount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. The form issued by a seller to inform a buyer that a credit has been made to accounts receivable.

2. Under the periodic system, it is the account credited when the proprietor withdraws merchandise for personal use.

3.. It is the amount of reduction allowable from the list price of goods offered for sale.

4. This is computed by deducting returns and allowances and partial payments from the invoice cost.

Choices

Sales

Purchase invoice

Purchase discount

Debit memo

Trade discount

Drawing

Trade - In

Capital

Purchase Allowances

Sales Invoice

Credit memo

Cash discount

 

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