If partial payment is made and installment payments are set up after the voucher is prepared for the total amount owed:
A) the old voucher is cancelled and a new voucher is prepared for the new amount owed.
B) the old voucher is credited for the entire amount.
C) Vouchers Payable is debited; Purchases Returns and Allowances is credited.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

Partial payments and installment setups do not typically involve canceling or crediting the entire voucher amount, nor do they involve debiting Vouchers Payable or crediting Purchases Returns and Allowances.

If Partial Payment Is Made and Installment Payments Are Set