A Receiving Clerk Notes That a Delivery of 10 Units

question 30

Multiple Choice

A receiving clerk notes that a delivery of 10 units has been received,but the purchase order specified 12 units.A debit memo will be prepared to adjust for the difference in the quantity ordered and received.Who should prepare this document?

• A)the receiving clerk
• B)management
• C)the sales department
• D)the purchasing department

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Fees Earned

Income received from providing services, a form of revenue for professionals and businesses engaged in service activities.

Interest Income

Revenue earned from the investment of funds in interest-bearing accounts or securities, such as bonds or savings accounts.

Rent Expense

An expense account recording the cost incurred by a business to rent facilities or equipment.