W4 - RECORDING TRANSACTIONS 1 - RECORDING TRANSACTIONS 1...

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RECORDING TRANSACTIONS 1
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BASIC DOCUMENTATION 1. INVOICE - sent by the seller to inform the buyer how much is owed for the goods supplied. 2. DEBIT NOTE – sent by the seller if they have undercharged the buyer on the invoice. 3. CREDIT NOTE – sent by the seller because the buyer has returned the goods or the seller has overcharged the buyer on the invoice. 4. STATEMENT – list of invoices, debit notes and credit notes that the seller has sent to the buyer during a given calendar month. 5. CHEQUE – most common form of payment. Normally crossed cheque.
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BASIC DOCUMENTATION Trade discount vs cash discount Trade discount – discount given that expressed as a percentage reduction of the recommended retail price of the goods. Cash discount – reduction of the amount that the customer has to pay provided payment is made within a given period stipulated by the seller at the time of sale.
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SALES INVOICES PURCHASE INVOICES SALES CREDIT NOTES PURCHASE CREDIT
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W4 - RECORDING TRANSACTIONS 1 - RECORDING TRANSACTIONS 1...

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