Accounting For Purchase Transactions Purchases refers to merchandise acquired for sale in a retail business. Purchase Requisition-Form used to request the purchase of assets.
Authorized person prepares and sends form to the purchasing department.
Purchase Order-Written order to buy goods from a specific vendor. Receiving Report-is prepared when goods are received from vendor. Cash and trade discounts-Cash discounts are available if the bill is paid within the discount period. Trade discounts are percentage reductions from the total amount of the invoice. Purchases Account Used to record the cost of merchandise purchased.