Asked by Areli Hernandez on Jul 04, 2024
Verified
A debit memorandum decreases which account on the buyer's books?
A) Accounts Payable
B) Sales
C) Sales Discount
D) Accounts Receivable
Debit Memorandum
A document issued to signal a decrease in accounts receivable, often due to a return or an adjustment.
Accounts Payable
Liabilities or amounts a company owes to creditors or suppliers for goods or services that have been received but not yet paid for.
Sales Discount
A reduction from the listed or invoice price offered by a seller to a buyer, often to prompt early payment or reward bulk purchases.
- Comprehend the effects of transactions on accounts payable and accounts receivable.
Verified Answer
ZK
Zybrea KnightJul 10, 2024
Final Answer :
A
Explanation :
A debit memorandum issued to a buyer typically indicates a decrease in the amount the buyer owes to the seller, thus reducing the Accounts Payable balance on the buyer's books. This could be due to a return of goods, an allowance, or a pricing error correction.
Learning Objectives
- Comprehend the effects of transactions on accounts payable and accounts receivable.