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What is the source document for recording a purchase of goods made on credit?

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Question: What is the source document for recording a purchase of goods made on credit?

The source document for recording a purchase of goods made on credit is typically an invoice or a purchase order. An invoice is a document that a seller sends to a buyer indicating the products or services provided and the amount due for payment. It includes details such as the date of the transaction, the names and addresses of the buyer and seller, a description of the goods or services purchased, the quantity, price, and any applicable taxes or fees.


A purchase order, on the other hand, is a document generated by the buyer to request goods or services from a supplier. It includes similar information to an invoice, such as the date, names and addresses of both parties, a description of the goods or services requested, the quantity, price, and any terms or conditions.


When a purchase of goods is made on credit, the invoice or purchase order serves as a record of the transaction and is used to create an accounts payable entry in the buyer's accounting system.

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