Explain each of the following source documents: (i) credit note; (2 marks)November 2022 Gi) debit note; (2 marks)November 2022 (iii) Local Purchase Order (LPO); (2 marks)November 2022 (iv) invoice. (2 marks)November 2022

(i) Credit note: A credit note is a document issued by a seller to a buyer to acknowledge a return of goods or a reduction in the amount of a previously issued invoice. It is used to adjust the value of a sale and to reduce the amount of revenue that has been recognized.

(ii) Debit note: A debit note is a document issued by a buyer to a seller to acknowledge an increase in the amount of a previously issued invoice. It is used to adjust the value of a purchase and to increase the amount of expense that has been recognized.

(iii) Local Purchase Order (LPO): A Local Purchase Order (LPO) is a document issued by a buyer to a seller, specifying the goods or services that the buyer wants to purchase and the terms of the purchase. It is used to authorize a purchase and to provide the seller with the information needed to fulfill the order.

(iv) Invoice: An invoice is a document issued by a seller to a buyer, specifying the goods or services that have been provided and the amount that is due for payment. It is used to request payment for goods or services that have been provided, and it provides the buyer with the information needed to make payment.