The source document for recording a purchase of merchandise on credit is
A) the purchase order.
B) the purchase invoice.
C) the receiving report.
D) the purchase requisition.

Question

Quizplus · Accepted Answer

The purchase invoice is the document that records the details of the purchase, including the item description, quantity, price, and terms of payment. It serves as evidence of the transaction and is used to record the purchase in the accounting records of the buyer. The purchase order is the document that initiates the purchase request, the receiving report records the receipt of the goods, and the purchase requisition is the internal document that authorizes the purchase. None of these documents would be the primary source for recording the purchase on credit.

The Source Document for Recording a Purchase of Merchandise on Credit