Explain each of the following types of documents and indicate the class of transactions in which they are commonly used.

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Explain each of the following types of documents and indicate the class of transactions in which they are commonly used.
1. Customer order
2. Shipping document
3. Remittance advice
4. Sales returns and allowance journal
5. Uncollectible account authorization form

Answer:
1. Customer order – request for merchandise by a customer. Appears in the Sales class of transactions.
2. Shipping document – document prepared to initiate shipment of goods, indicating the description of the merchandise, the quantity shipped, and other relevant data. Appears in the Sales class of transactions.
3. Remittance advice – document that accompanies the sales invoice mailed to the customer and can be returned to the seller with payment. Appears in the Cash receipts class of transactions.
4. Sales returns and allowance journal – journal used to record all sales returns and allowances, analogous to the sales journal. Appears in the Sales returns and allowance class of transactions.
5. Uncollectible account authorization form – document used internally to indicate authority to write off an account receivable. Appears in the charge off of Uncollectible accounts class of transactions.

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