- October 28, 2022 at 11:01 am #670190Sacca22Participant
- Topics: 28
- Replies: 37
What accounts does invoices affect?
A business received a delivery of goods on 29 June 2013, which was included in inventory at 30 June 2013 The invoice for the goods was recorded in July 2013.
What effect will this have had on the business?
A- Inventory at 30 June will be understated
B- Inventory at 30 June 2013 will be overstated
C- Profit for the year ended 30 June 2013 will be overstated
D- Profit for the year ended 30 June 2014 will be overstated
So for this question we did not include it in purchases. If the question said it was purchased on credit, would this affect our payables?
We only record purchases and payables once we receive an invoice?
If we made a sale without sending an invoice how would we record that?October 28, 2022 at 4:01 pm #670199John MoffatKeymaster
- Topics: 56
- Replies: 53174
We record purchases when we receive the invoice if it is bought on credit or when we pay the cash if it is bought for cash.
If we make a sale for cash then we debit cash and credit sales when we make the sale.
If we make a sale on credit then we debit receivables and credit sales when we send the invoice. We will always send an invoice if we make a sale on credit.
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