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When goods are sold on credit, the source document typically used is a sales invoice. This document details the items sold, their quantities, prices, and the terms of the credit agreement, including payment due dates. It serves as a formal record of the transaction between the seller and the buyer, and it is essential for accounting and tracking receivables.
What else can I help you with?
Is an application for credit considered a source document?
A source document is one that originates and provides proof of a financial transaction. My guess is if the amount approved is not indicated on there it is considered correspondence. For bookkeeping purposes though, the source document would be specific check or credit card indicating the amount of credit.
What is an accounting source document?
It is the original paper or document that indicates that a transaction took place. For a sale, the account source document would be the sales receipt or invoice. For a purchase, it would be the receipt or invoice from the vendor. For salaries, it would be the cancelled paycheck.
What are the journal entries for 'Sold goods on credit?
When goods are sold on credit, the journal entry typically includes a debit to Accounts Receivable and a credit to Sales Revenue. For example, if goods worth $1,000 are sold on credit, the entry would be: Debit: Accounts Receivable $1,000 Credit: Sales Revenue $1,000 This reflects the increase in receivables and the recognition of revenue from the sale.
Why is trade credit generally the largest source of short term credit for small firms?
Well, trade credit would be credit extended by suppliers (I guess). So, if in fact it is the largest source of short term credit, it would be because it is easier to get credit from people that want to sell you something than from someone that lends money (the potential profit warrants the risk).
A company using a perpetual inventory system that returns goods previously purchased on credit would?
Debit Sales and credit Accounts Payable.
Is an application for credit considered a source document?
A source document is one that originates and provides proof of a financial transaction. My guess is if the amount approved is not indicated on there it is considered correspondence. For bookkeeping purposes though, the source document would be specific check or credit card indicating the amount of credit.
What is an accounting source document?
It is the original paper or document that indicates that a transaction took place. For a sale, the account source document would be the sales receipt or invoice. For a purchase, it would be the receipt or invoice from the vendor. For salaries, it would be the cancelled paycheck.
What are the journal entries for 'Sold goods on credit?
When goods are sold on credit, the journal entry typically includes a debit to Accounts Receivable and a credit to Sales Revenue. For example, if goods worth $1,000 are sold on credit, the entry would be: Debit: Accounts Receivable $1,000 Credit: Sales Revenue $1,000 This reflects the increase in receivables and the recognition of revenue from the sale.
What enabled sharecroppers to purchase goods on credit?
The sharecroppers were able to purchase goods on credit for a mortgage or lien on the farmer's crop. The merchant would advance supplies such as food, clothes, or tools in return.
Why is trade credit generally the largest source of short term credit for small firms?
Well, trade credit would be credit extended by suppliers (I guess). So, if in fact it is the largest source of short term credit, it would be because it is easier to get credit from people that want to sell you something than from someone that lends money (the potential profit warrants the risk).
A company using a perpetual inventory system that returns goods previously purchased on credit would?
Debit Sales and credit Accounts Payable.
Which document is an example of a primary source?
A diary written by someone during the time period being studied would be considered a primary source document. It provides a firsthand account of experiences, thoughts, and emotions from that specific time.
A historical document written by an eyewitness or someone who lived through an event A document interpreting eyewitness accounts and other accounts of an event.?
First one is a primary source, because it's from their "Primary View" second one is a secondary source, since they didn't see it in their Primary View, it was told to them. So the answer for apex is (A) primary source; (B) secondary source
What can historians not use to study prehistory?
Any written document, otherwise that would be an source and be a part of history.
Which document would be a primary source for the study of prohibition on?
A primary source is an unaltered document that was written by someone during the era in question. Journals or letters from bootleggers, bartenders or patrons would be primary sources for the study of Prohibition.
Is The Bill of Rights primary or secondary source?
The Declaration of Independence is a primary source, but only if you use the original document or a fascimile of the real document. Someone else's paraphrase of it or opinion would be a secondary source.
What is one reason Document B would not be a reliable source to understand what happened when Moctezuma met Cortés?
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