Which document establishes an initial record of the receipt of inventory?

• A. Invoice
• B. Purchase order
• C. Receiving report
• D. Sales receipt

Answer: (C)

Verified step by step guidance

1. Understand the purpose of each document mentioned in the problem: An invoice is a document sent by the seller to the buyer, detailing the goods or services provided and the amount due. A purchase order is a document created by the buyer to request goods or services from the seller. A sales receipt is a document provided by the seller to confirm payment and delivery of goods or services. A receiving report is a document used to record the receipt of inventory when it arrives at the buyer's location.
2. Identify the key requirement of the problem: The document that establishes an initial record of the receipt of inventory.
3. Recognize that the receiving report is specifically designed to document the receipt of inventory, including details such as quantity, condition, and any discrepancies between the order and the received goods.
4. Eliminate the other options based on their purpose: An invoice does not record the receipt of inventory; it is related to payment. A purchase order is used to initiate the purchase, not to record receipt. A sales receipt confirms payment, not inventory receipt.
5. Conclude that the correct document for establishing an initial record of the receipt of inventory is the receiving report.