Question

A debit memo ________.

1) Reduces the amount of accounts payable due to a vendor.
2) Reduces accounts payable when payment is made.
3) Is used by vendors to record cash payments received.
4) Authorizes a debit to purchases when goods are received.

Answer 1

A debit memo is a document or transaction that reduces the amount of accounts payable due to a vendor.

Step-by-step explanation:

A debit memo is a document or transaction that reduces the amount of accounts payable due to a vendor. It is typically used when there is an overpayment or a return of goods. Debit memos are used to adjust the amount owed to the vendor and reduce the accounts payable balance.