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

Question

Quizplus · Accepted Answer

A debit memorandum is a document issued by a buyer to inform a seller of a debit made to the seller's account payable in the buyer's records. It is typically used to correct errors or dispute charges on an invoice. Therefore, option (E) is the correct answer as it is the definition of the term.

A Debit Memorandum Is