the buyer must pay for the transportation of the goods from the factory.
VAT
Value Added Tax. Is a tax added on to the value of a good or service.
Trade discount
A reduction the selling price given when the buyer and seller are in the same area of business. It is deducted before VAT is added to the price.
Unit Price
The price per ONE product.
Invoice
This is a bill for the goods.
Credit Note
Sent from seller to buyer if they have been overcharged or have received faulty goods
Procedure for dealing with complaints
Listen to the complaint, Investigate the complaint, Take the necessary action, Reply to the complaint, File a record of the complaint
Buying on credit means...
buy now, pay later
Treatment of incoming invoices
Compare with order and delivery docket, Check accuracy of prices and calculations, Write in Purchases Day book and post to creditors ledger, File a copy
Bad Debts
Arise when the buyer does not pay the seller what they owe. They are written of as an expense by the seller
