A debit memorandum is:
A)Required whenever a journal entry is recorded.
B)The source document for the purchase of merchandise inventory.
C)Required when a purchase discount is granted.
D)The document a buyer issues to inform the seller of a debit made to the seller's account payable in the buyer's records.
E)Not necessary in a perpetual inventory system.

Question

Quizplus · Accepted Answer

A debit memorandum is a document that a buyer issues to inform the seller of a debit made to the seller's account payable in the buyer's records. It is usually used to request a credit from the seller or to explain a discrepancy between the buyer's and the seller's records. It is not required whenever a journal entry is recorded, it is not the source document for the purchase of merchandise inventory, it is not required when a purchase discount is granted, and it may be necessary in a perpetual inventory system depending on the circumstances.

A Debit Memorandum Is