A debit memo:
A)reduces the amount of accounts payable due to a vendor.
B)reduces accounts payable when payment is made.
C)is used by vendors to record cash payments received.
D)authorizes a debit to purchases when goods are received.

Question

Quizplus · Accepted Answer

A debit memo is a document issued by a vendor to reduce the amount due on an accounts payable balance. This can occur when a vendor refunds an overpayment, grants a discount, or makes an adjustment to an invoice. In all cases, the debit memo reduces the outstanding balance on the accounts payable account.

A Debit Memo