BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

SALES DOCUMENTS Indicate whether each of the following documents or procedures is for a retail business or for a wholesale business, as described in the chapter.

  1. 1. A cash register receipt is given to the customer.
  2. 2. Credit approval is required since sales are almost always “on account.”
  3. 3. Three copies of the sales invoice are prepared: one for shipping, one for the customer (as a bill), and one for accounting.
  4. 4. A sales ticket is given to a customer and another copy is sent to accounting.
  5. 5. The sales process begins with a customer purchase order.
  6. 6. The sales invoice itemizes what is sold, its cost, and the total amount owed.

To determine

Indicate whether the given sales documents or procedures are used in the retail, or wholesale businesses.

Explanation

Sales: Sale is an exchange transaction of merchandise wherein the seller transfers the ownership of asset or goods to buyer, for money.

Retail businesses: The businesses which buy goods from manufacturers or wholesale businesses and sell to the consumers are referred to as retail businesses.

Wholesale businesses: Wholesale business is that which buy goods from suppliers, or manufacturers, and sell to retailers. These companies act as middlemen between manufacturing and retailing companies.

Sales documents used in retail businesses:

  • Cash register tape summary
  • Sales ticket
  • Credit memorandum

Sa...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Explain why product extension and refinement are important.

Foundations of Business (MindTap Course List)

CROSS RATES Use the foreign exchange section of a current issue of The Wall Street journal to look up the three...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)