Q3TI - Horngren'S Financial And Managerial Accounting

Question

Fill in the missing information.

a. The vendor ships the inventory and sends a(n) __________ back to the purchaser.

b. After approving all documents, the purchaser sends a(n) __________ to the vendor.

c. When ordering merchandise inventory, the purchaser sends a(n) __________ to the vendor.

d. The purchaser receives the inventory and prepares a(n) __________.

Step-by-Step Solution

Answer

In the first part, the blank space is filled with invoice.

Step 1: Definition of invoice

An invoice is a document that is sent by the vendor to the purchaser. The invoice contains the details about the order.

Step 2: The blank space filled with

1. After the shipping of the inventory the vendor sends an invoice to the purchaser.
2. After approving all the documents, the purchaser makes the payment by sending a check.
3. When ordering the merchandise inventory, the purchaser sends a purchase order to the vendor.
4. After receiving inventory the purchaser prepares a receiving report.