Debit Memorandum

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Dictionary Says

Definition of 'Debit Memorandum'

1. A document given to an account holder which states that the account balance has been decreased as a result of factors other than a cash withdrawal or a written check being cashed in. Debit memorandums can arise as a result of bank service charges or bounced check fees. A debit memorandum is typically sent out to bank customers along with their monthly bank statements.

Also known as a "debit memo", for short.

2. The adjustment procedure that occurs following a business's valid complaint against another business. For example, if Company A sends defective merchandise to Company B, a debit memorandum would be issued in order to adjust the accounting statements in terms of debits and credits.

Investopedia Says

Investopedia explains 'Debit Memorandum'

It is usually preferable to avoid debit memorandums from either the individual or business perspective. Individuals typically incur undesirable fees for additional bank service charges or for having a check bounce. On the other hand, there are numerous implicit costs for a business debit memorandum such as possible loss of reputation and human labor to make the necessary adjustments.

Search results for

'Debit Memorandum'

  • Series 7 Study Guide - Customer Accounts - Special Memorandum ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/special-memorandum-account.asp
    ... by sending you a memo to this effect, credit a portion of excess equity to a separate
    bucket called a special memorandum account (SMA ... ($1,000) Debit Balance. ...

  • Series 7 Study Guide - Customer Accounts - Purchasing Additional ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/purchase-shares-margin.asp
    ... $5,000 Long Market Value. ($2,000) Debit Balance. ... Next: Special Memorandum Account ยป.
    Tweet. Email Email. Print Print. Order Reprints Reprints. Feedback Feedback ...

  • Series 7 Study Guide - Customer Accounts - Stock Price Changes and ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/stock-price-change-margin.asp
    ... 10.13 Purchasing Additional Shares On Margin; 10.14 Special Memorandum Account;
    10.15 Short Sales; ... $5000 Long Market Value. ($2000) Debit Balance. ...

  • Series 7 Study Guide - Customer Accounts - Margin Account ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/hypothecation-margin-value.asp
    ... 10.13 Purchasing Additional Shares On Margin; 10.14 Special Memorandum Account;
    10.15 Short ... comprised of $2,000 on loan from the broker, or debit balance, and ...

  • Marcellus Shale Ethane Production

    http://stocks.investopedia.com/stock-analysis/2011/Marcellus-Shale-Ethane-Production-RRC-RDS.A-RDS.B-SXL-MWE-STO0911.aspx
    ... NOVA Chemicals is diversifying its supply, and in July it signed a memorandum of
    understanding with Statoil (NYSE:STO) to purchase ethane from the company's ...

  • Shale Gas Gets Kick Start In United Kingdom

    http://stocks.investopedia.com/stock-analysis/2011/Shale-Gas-Gets-Kick-Start-In-United-Kingdom-RDS.A-RDS.B-XOM-MPET-SWN0927.aspx
    ... Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) submitted a memorandum to a parliamentary
    committee in 2010 and said that although there is unconventional gas ...

  • Series 7 Study Guide - Customer Accounts - Market Value of a Short ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/market-value-short.asp
    ... 10.13 Purchasing Additional Shares On Margin; 10.14 Special Memorandum Account;
    10.15 Short Sales; ... $100,000 Long Market Value. $50,000 Debit Balance. ...

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