Merchandising Documents

Last November 9, 2016, Sir Randy discussed about the Merchandising Documents.

According to Win Ballada (2013),

“SOURCE DOCUMENTS

Transactions and events are the starting points in the accounting cycle. By relying on source documents, transactions and events can be analyzed as to how they will affect performance and financial position. Source documents identify and describe transactions and events entering the accounting process. These original written evidences contain information about the nature and the amounts of the transactions.”

Invoice

Sales Invoice

- provide record for sales.

Debit: Account Receivable Credit: Sales

Purchase Order

- requesting either goods to be supplied or service to be carried out.

Debit: Purchase Credit: Account Payable

Credit Memorandum

- used by the seller to notify the buyer that his account is being decreased due to errors or other factors requiring the adjustments (Ballada, 2013).

Debit: Sales Returns and Allowances Credit: Account Receivable

Debit: Account Payable Credit: Purchase Returns and Allowances

Official Receipt

- evidences the receipt of cash by the seller or the authorized representative. It notes the invoices paid and other details of payment.

Cash Voucher

- standard form kept by the petty cash custodian

Debit: (Operating Expense) Credit: Cash

Reference:

Ballada, W. (2013). Source Documents. In W. Ballada, Basic Accounting. DomDane Publishers and Made Easy Books.