When a purchase on account is made the invoice becomes a debit memo?

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Business

Julianna Hansen

12 December, 23:36

When a purchase on account is made the invoice becomes a debit memo?

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Levi Oneill · Answer 1

When a purchase on account is made, the invoice becomes a debit memo. The account receivable is normally documented through invoice which is issued to the customer who is buying on credit. When purchasing on an account, the balance of the invoice becomes a payable, that is, a debt.