When a purchase on account is made the invoice becomes a debit memo?

Question

Business

Guest

26 March, 03:48

When a purchase on account is made the invoice becomes a debit memo?

+1

Answers (1)

Know the Answer?

Erick Francis · Answer 1

When a purchase on account is made, the invoice becomes a debit memo. The account receivable is normally documented through invoice which is issued to the customer who is buying on credit. When purchasing on an account, the balance of the invoice becomes a payable, that is, a debt.