A bill of lading is a legal document that is issued by a carrier or their agent as an acknowledgment for receipt of cargo for shipment. It details the type, quantity, and destination of the goods been carried. The document accompanies the shipped products regardless of the form of transportation and is signed by an authorized representative from the carrier. The bill of lading acts as a title for the goods being shipped and a document showing the receipt for the shipped products. Finally, the document is a representation of the agreed terms and conditions for the transportation of goods.
A credit memorandum is a document issued to a buyer by a seller after an invoice is sent out. The credit memo either reduces the price of the items purchased by the buyer or eliminates the entire cost. The credit memo is mainly used to correct sales situation that requires a reduction in the amount of good or services that were previously sold. According to Hood (2014) , The document is always tied to a previous invoice and commonly used in cases where customers receive goods that are damaged, incomplete or of the wrong type.
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Remittance advice is a document sent by a customer to a supplier to notify them that their invoice has been paid. This document eases the process of matching the invoices and payments for the supplier As remittance advice state the invoice number and the amount paid to the supplier. It is useful mainly when a specific payment covers several payments.
The accounts receivable trial balance reports all the transactions that affect the accounts receivable accounts. The trial balance is used for the verification of each accounts receivable balance in the general ledger. According to TDCI (2011), it only provides details for transactions that have accounting dates on or before the cut-off date. The report is essential as provides details on the outstanding invoices for each customer including balances that are over 30, 60 and 90 days old.
References
Hood, E. (2014). What is a Credit Memo? | Outsourced Accounting Services. Retrieved March 6, 2019, from https://www.ignitespot.com/what-is-a-credit-memo
TDCI. (2011). Accounts Receivable Trial Balance. Retrieved March 6, 2019, from http://www.tdci.com/MAC-PAC/Documentation/MAC-PAC-Reference-Library/Financials/Accounts-Receivable/Key-Concepts-and-Procedures/Accounts-Receivable-Trial-Balance
