If the credit terms for debtors are too strict, sales may drop as customers may be

None of the other options

Cash and credit sales

Only current assets (Trade receivables, inventory and cash)

The capital contribution from owners of the business that is worked to generate a

 A debit note is a document issued by a supplier.

A credit note is a document issued by the customer.

 A debit note is a document issued by the customer.

Cheque/EFT/Credit card receipt

  Debtors Statement

VAT Invoice

Bank statement

Credit note

 Debit note

Keeps an account of transactions with each debtor in individual accounts

Records only cash received from debtors

Keeps an account of payments made by the business

Records all credit sales by the business

Customer might return the stock in a poor condition

 Lower sales value reflected in the trial balance

Bad debts

There will be a deficit in the stock at the end of the month

We will recognize the full amount as sales, as this is the income we are anticipating

Trade receivable figure will be net of the discount

We will recognize sales in the profit calculation net of the discount as this is the income we anticipate earning.

Dr Trade receivables          10,      Cr discount received        10

 Dr Trade receivables       90,      Cr Sales                               90

Dr Trade receivables     100,      Cr Sales                             100

Dr   Bank                           100,     Cr Sales                           100       

Dr Trade receivables          10,      Cr discount received        10

Dr Trade receivables       90,      Cr Sales                               90

Dr Trade receivables     100,      Cr Sales                             100

Dr   Bank                           100,     Cr Sales                         100