What would you issue if a service has been performed but payment is still outstanding?

What would you issue if a service has been performed but payment is still outstanding?

• A. Sales Receipt
• B. An Invoice
• C. Bank Deposit
• D. Credit Memo

Answer: (B)

When payment hasn’t been received yet for services performed, you issue an invoice. An invoice formally requests payment and records the service provided, the amount due, and the payment terms. A sales receipt is given after payment is received, so it wouldn’t be appropriate when payment is still outstanding. A bank deposit records funds received, not a request for payment. A credit memo reduces a customer’s balance due, typically for returns or allowances, not to request payment for a new service.

When payment hasn’t been received yet for services performed, you issue an invoice. An invoice formally requests payment and records the service provided, the amount due, and the payment terms. A sales receipt is given after payment is received, so it wouldn’t be appropriate when payment is still outstanding. A bank deposit records funds received, not a request for payment. A credit memo reduces a customer’s balance due, typically for returns or allowances, not to request payment for a new service.