Question

cash memo is used for credit purchasesale

Answer 1

A seller prepares a cash memo whenever cash transactions happen and records the details of sold goods in the books of accounts. This memo includes actual rate, quantity and total amount of goods sold, along with the transaction date. A cash memo is therefore shared by a trader in the case of sales and it is received in the case of purchases. Cash memos are used for both cash purchases or sales. To record credit purchases or sales, an invoice or bill is generated by the seller.