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If a customer has given a down payment on goods does he have to pay the remainder?
Wiki User
∙ 14y ago
This depends on several things:
- Local law
- What the sales agreement reads and was one signed
- And finally what goods we are talking about.
In our area a down payment is the beginning of a financing agreement. The "financing agreement" or "Loan" is a legal contract to make payment on a set cycle.
Refusal to pay will be a default and result in bad consequences to your credit rating.
A Deposit:Is a different mater, in my area it is a promise to purchase and the dealer or seller agrees to hold the item for a set period for this sum and the sum is applied to the purchase when the deal is finalised.The money is forfeited if you do not go through with the deal.
Wiki User
∙ 14y ago
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What is realization principle?
When service given or goods supplied to customer then reveneu is earned and cash received or not received
The features of trade credit as a short-term source of Working Capital Finance?
Trade credit is the credit line given by a seller to a customer, which allows delay in payment for goods or services. Its features in terms of Working Capital Finance are availability and flexibility.
When payment by CIF?
The payment is realized after discharging of goods in port of destination?
What is meaning of gift check?
A gift check is the same as a gift certificate. It shows that payment for the goods or services were made in advance and given as a gift to another person.
What is an advance payment?
An advance payment is a part of a sum which is paid or received in advance for goods and services.
What were the colonies given in payment of debts?
They traded goods.
Small payment of goods or land given to indentured servants?
freedom dues
What is realization principle?
When service given or goods supplied to customer then reveneu is earned and cash received or not received
What is meant by payment term CAD 60 days?
It means 60 from the date the customer receives the goods. CAD = Cash Against Documents
The features of trade credit as a short-term source of Working Capital Finance?
Trade credit is the credit line given by a seller to a customer, which allows delay in payment for goods or services. Its features in terms of Working Capital Finance are availability and flexibility.
How is a demand draft used?
A Demand draft is used by two people: 1. The Customer who is taking the Draft - He uses the draft to make a payment to another party 2. The Customer who is receiving the Draft - He uses the draft to receive a payment for any goods or services provided to the customer 1. A demand draft is a monetary instrument that is used for transfer or payment of money from one individual to another.
What is the definition of a cash payment?
The definition of a cash payment is a form of liquid funds that is given by a consumer to service and goods providers in return for receiving them. You can learn more about cash payment at the Business Dictionary website.
How does processing of credit cards work?
A credit card is a payment card. It allows the cardholder to pay for goods and services based on the holders promise to pay for them. The cardholder submits their card for payment, the card is accepted digitally for payment and the transaction is completed. The customer leaves with goods or services and then the credit card issuer will process the payment and forward a statement usually once a month to the cardholder.
What is the Journal entry for collected 770 in advance from a customer?
A cash advance received from customer journal entry is required when a business receives a cash payment from a customer in advance of delivering goods or services.
When does a business issue an invoice?
If a customer has an account, an invoice will be issued on delivery of goods. Most customer accounts have a 30 day in which to pay, or 90 days in some cases. It may be that, an invoice stamped paid be given as a receipt when a customer pays and collects the goods, usually over the counter.
Can you use purchased goods for construction loan down payment?
Banks do not accept goods as payment for a mortgage.
Is a supplier of goods and services a customer?
A supplier of goods and services is commonly referred to as a vendor. Unless they are buying your goods or services they are not a customer.
