A customer makes a purchase and pays for it as part of a direct sale. Which sales form should be used for this transaction?

A customer makes a purchase and pays for it as part of a direct sale. Which sales form should be used for this transaction?

• A. Invoice
• B. Sales Receipt
• C. Receipt
• D. Credit Memo

Answer: (B)

When a customer pays at the time of purchase, you’re completing the sale immediately. The appropriate form is a sales receipt. It records the revenue and the cash received in one step and, if you’re selling goods, updates inventory as well. An invoice is used when the sale is on credit, creating an accounts receivable to be paid later. A credit memo is for refunds or credits to a customer, not a standard cash sale.

When a customer pays at the time of purchase, you’re completing the sale immediately. The appropriate form is a sales receipt. It records the revenue and the cash received in one step and, if you’re selling goods, updates inventory as well. An invoice is used when the sale is on credit, creating an accounts receivable to be paid later. A credit memo is for refunds or credits to a customer, not a standard cash sale.