A debit memo
A) Reduces the amount of accounts payable 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 typically used by a vendor to notify a buyer of additional charges or to correct an error in an invoice. It reduces the amount of accounts payable to the vendor by the amount of the additional charges or the correction.

A Debit Memo