If the credit terms for debtors are too strict, sales may drop as customers may be

The capital contribution from owners of the business that is worked to generate a

None of the other options

Only current assets (Trade receivables, inventory and cash)

Cash and credit sales

 A debit note is a document issued by the customer.

A credit note is a document issued by the customer.

 A debit note is a document issued by a supplier.

VAT Invoice

  Debtors Statement

Cheque/EFT/Credit card receipt

Bank statement

 Debit note

Credit note

Records only cash received from debtors

Records all credit sales by the business

Keeps an account of payments made by the business

Keeps an account of transactions with each debtor in individual accounts

Customer might return the stock in a poor condition

Bad debts

There will be a deficit in the stock at the end of the month

 Lower sales value reflected in the trial balance

We will recognize the full amount as sales, as this is the income we are anticipating

We will recognize sales in the profit calculation net of the discount as this is the income we anticipate earning.

Trade receivable figure will be net of the discount

Dr Trade receivables          10,      Cr discount received        10

 Dr Trade receivables       90,      Cr Sales                               90

Dr Trade receivables     100,      Cr Sales                             100

Dr   Bank                           100,     Cr Sales                           100       

Dr   Bank                           100,     Cr Sales                         100                

Dr Trade receivables          10,      Cr discount received        10

Dr Trade receivables       90,      Cr Sales                               90

Dr Trade receivables     100,      Cr Sales                             100