When a merchandiser sells on account, which of the following is not needed to record the transaction?
To determine which of the following is not needed to record the transaction when a merchandiser sells on account, we need to understand the usual steps involved in recording such transactions.
When a merchandiser sells on account, it means that the customer is allowed to purchase goods or services on credit, with the payment to be made at a later date. To record this transaction, typically the following steps are involved:
1. Create a Sales Invoice: The merchandiser needs to prepare a sales invoice, which includes details such as the customer name, date of sale, description of the goods or services sold, quantity, unit price, and any applicable taxes or discounts.
2. Debit Accounts Receivable: The merchandiser debits the accounts receivable account, which represents the amount owed by the customer for the goods or services purchased.
3. Credit Sales Revenue: The merchandiser credits the sales revenue account, which represents the income earned from the sale of goods or services.
4. Optionally, Record Sales Tax: If there is any sales tax applicable, the merchandiser may also need to record the sales tax liability and related tax revenue.
Now, to determine which of the following is not needed to record the transaction, we need to know the options given. Please provide the options, and I will explain which one is not required.