Which of the following would require a cash receipt?
A. Credit memo
B. Purchase order
C. Check
D. Refund
The answer is D per a tutor! :)
To determine which of the following would require a cash receipt, we need to understand what each option refers to:
A. Credit memo: A credit memo is a document issued by a seller to a customer, indicating that the seller is crediting their account for a specific amount due to various reasons such as returns, discounts, or allowances. This does not require a cash receipt.
B. Purchase order: A purchase order is a document sent by a buyer to a seller, indicating the type, quantity, and agreed-upon price of products or services to be purchased. It is used to initiate a purchase, but it does not involve the transfer of money, so it does not require a cash receipt.
C. Check: A check is a written order from a bank account holder to their bank, instructing the bank to pay a specific sum of money to a recipient. When a check is received and deposited or cashed, a cash receipt can be issued to acknowledge the receipt of cash.
D. Refund: A refund is the return of money to a customer who has previously made a payment. When a refund is given, a cash receipt is typically issued to document the return of cash to the customer.
Based on the above explanations, the option that would require a cash receipt is:
D. Refund.