Asked by
toumani camara
on Dec 17, 2024
Verified
A debit memorandum increases which account on the seller's books?
A) Accounts Payable
B) Merchandise Inventory
C) Sales Returns and Allowances
D) Accounts Receivable
Debit Memorandum
A document issued by a buyer to a seller indicating a debit or adjustment to an account, typically related to goods returned or a pricing dispute.
Sales Returns and Allowances
A reduction in sales revenue due to returns or allowances for unsatisfactory goods, reported as a contra-revenue account.
- Acquire an understanding of how transactions influence accounts payable and accounts receivable.
Verified Answer
RS
Learning Objectives
- Acquire an understanding of how transactions influence accounts payable and accounts receivable.
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