Question

Identify and explain the use of three (3) source documents in the transaction to purchase and sell 1,500 bales of second-hand clothing.

Answer 1

The use of three source documents in the transaction to purchase and sell 1,500 bales of second-hand clothing includes an invoice, shipping documents, and a purchase order.

Step-by-step explanation:

Source Documents in the Transaction to Purchase and Sell Second-hand Clothing

Invoice: An invoice is a source document used to record the details of a purchase or sale transaction. In this case, an invoice would be generated by the seller to provide the buyer with information about the purchase of the 1,500 bales of second-hand clothing, including the quantity, unit price, total amount, and any applicable taxes.

1. Shipping Documents: Shipping documents such as a bill of lading or delivery note would be used to document the transportation of the second-hand clothing from the seller to the buyer. These documents would contain details about the shipment, such as the quantity, description, and condition of the goods being transported.
2. Purchase Order: A purchase order is a document generated by the buyer to formally request the purchase of goods from a seller. In this transaction, the buyer would prepare a purchase order to specify the quantity, price, and other terms and conditions for the purchase of the 1,500 bales of second-hand clothing.