Question

which form can be used to record a purchase when the payment will be made later after receiving the product or service? vendor credit form check form bill form expense form

Answer 1

A bill form is used to record a purchase when payment is deferred to a later date following the receipt of goods or services. It is not to be confused with a check form, which settles the payment immediately or a vendor credit form which indicates the receipt of credit from a vendor.

Step-by-step explanation:

The form that can be used to record a purchase when the payment will be made later after receiving the product or service is a bill form. This document serves as a record of the transaction, detailing the products or services received and the amount owed, which the company will pay at a future date. This is different from using a check form, where payment is made immediately, and differs also from a vendor credit form, which indicates that a company has received credit from the vendor.

With a credit card, the money is immediately transferred from the credit card company's checking account to the seller, and the credit card user owes the amount to the credit card company at the end of the month, effectively creating a short-term loan. An overdraft occurs when a check is written for an amount greater than the balance in the checking account, leading to negative balance and potential additional fees.