Ch11 - EOC #15 Chapter 11 11-2 The three types of...

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Unformatted text preview: EOC #15 Chapter 11 11-2 The three types of transactions that are processed through the purchasing process are: Purchase of goods and services for cash or credit Payment of the liabilities arising from such purchases Return of goods to suppliers for cash or credit The more common accounts affected by each major type of transaction are: Purchase transaction: Accounts payable Inventory Purchases or cost of goods sold Various asset and expense accounts Cash disbursement transaction: Cash Accounts payable Cash discounts Purchase return transaction: Purchase returns Purchase allowances Accounts payable Various asset and expense accounts 11-3 A purchase requisition is a request for goods and services by an authorized individual or department within the entity. A purchase order contains the description, quality, quantity, and other information on the goods and services being purchased. A receiving report is used to record the receipt of goods. A vendor invoice is the bill from the vendor that includes the description and quantity of the goods shipped or services provided, the price including freight, the terms of trade including cash discounts, and the date billed. A voucher is a document that is frequently used by entities to control the payment of acquired goods and services. An entity would combine all these documents into a "voucher packet" because such a packet would contain all the information on a particular purchase transaction. If there are questions about the transaction at a later time, the entity can obtain access to all the documents and information more easily. 11-6...
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Ch11 - EOC #15 Chapter 11 11-2 The three types of...

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