Theory question 110
Purchase and Sale of GoodsCommerce 2 (essay)
(a) State one use of each of the following:
(i) letter of enquiry;
(ii) invoice;
(iii) advice note;
(iv) credit note;
(v) statement of account;
(vi) debit note.
(b) Identify two advantages and two disadvantages of automatic vending.
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(a)(i) Letter of enquiry – sent by a buyer to ask about prices, terms and availability of goods.
(ii) Invoice – the seller's bill telling the buyer the goods supplied and the amount owed.
(iii) Advice note – tells the buyer that goods have been despatched.
(iv) Credit note – reduces the amount the buyer owes, e.g. for returned goods or overcharge.
(v) Statement of account – summary of transactions for a period showing the balance the buyer owes.
(vi) Debit note – increases the amount owed when the buyer was undercharged.
(b) Advantages (any two): sells 24 hours; saves labour cost; convenient and quick; no shoplifting by assistants. Disadvantages (any two): limited range of goods; machines break down/need power; vandalism and theft; costly to buy and maintain; no personal service.
One use per document is enough in (a).