When a distributor is involved in international trade, there are two sets of invoices: one set between the exporter and the dist

Question

3 years ago

8

When a distributor is involved in international trade, there are two sets of invoices: one set between the exporter and the dist

ributor (who is also the importer), and a set of domestic invoices between the distributor and its customers. A. TrueB. False

Business

1 answer:

Tanzania [10] · Answer 1 · 2022-08-24T13:25:30+03:00

Answer:

A. True

Explanation:

Invoices also called bills in accounting is used for recording sales transactions and to account for requests and receipts for payments.

If a distributor becomes involved in trade beyond national borders, Two sets of invoices are used. The international trade invoices (1st set of invoices) being the transaction details between the seller (exporter from other country) and the buyer who is the distributor (importer). While the local or domestic involves (2nd set of invoices) would show transaction details between the distributor (who's now the seller) and the buyers or customers.

This happens because the two transactions are separate containing separate information of seller's and buyer's name, addresses, contacts details, tariffs or taxes and so on.