Q3:) Solve all parts of question 3:

a) NSF cheques from customers are entered by reversing a receipt in the Receipts Journal. Why is this approach preferred over entering the NSF cheque as a new sales invoice?

b) What happens when you post a payment? What linked accounts are affected and how are they affected?

c) How is a cash purchase different from a purchase that is paid later?

d) When would you adjust a receipt and when would you reverse a receipt?