Analyzing and Recording Purchases on Account
What is a written offer to a supplier to buy specified items?
Purchase Order
An amount paid for insurance
Premium
Who handles a broad range of responsibilities, makes business decisions, and prepares and interprets financial reports?
Accountant
If a Sales Journal page fills up, what two words are written on the last line to take the numbers to the next page?
Carried Forward
Which special journal is used to record all transactions in which cash is received?
Cash Receipts Journal
What is a written request that a specified item or items need to be ordered?
Purchase Requisition
What form is filled out that notifies suppliers (creditors) of a return to request an allowance?
Debit Memorandum
Which accounting form summarizes how much an employee earned and amounts (deductions) held for taxes?
W-2
What are journals that have amount columns for recording debits and credits to specific general ledger accounts?
Special Journals
What is a list of each charge customer and the balance in the customer's account?
Schedule of Accounts Receivable
Merchandise bought to sell to customers is recorded in the ____ _____, a temporary account classified as a cost of merchandise account.
Purchases Account
What is a file that contains a folder for each day of the month into which invoices are placed according to their due dates?
What does it mean to add all the debit balances, add all the credit balances, and comparing their equality?
Proving
In the Sales Journal, it is important to write these under the totals of each the Sales Credit, Sales Tax, and Accounts Receivable. (In Parentheses)
Account Numbers
Internet sales ensure steps are taken to make sure online sales transactions are _____.
Secure
What is a form that lists the items included in a shipment?
Packing Slip
What is a separate ledger that contains account for all creditors?
Accounts Payable Subsidiary Ledger
What are the most common pay periods?
Weekly, Biweekly, Semimonthly, Monthly
Briefly discussed... What is a column total written in small pencil figures?
Footing
What are the two possible errors in a subsidiary ledger?
2. Miscalculating an Account Balance
What 7 things are included on a purchase order?
Quantity, Description, Unit Price, Total Cost, Supplier's Name/Address, Date Needed, and Shipping Method
List the T-Account rules for Purchases and Purchases Discounts.
Purchases: Increase on Debit, Decrease on Credit, Normal Balance on Debit
Purchases Discounts: Increase on Credit, Decrease on Debit, Normal Balance on Credit
EASY 500 POINTS... What is our accounting equation?
Assets = Liabilities + Owner's Equity
Which three accounts are affected in the Sales Journal?
Sales Credit, Sales Tax Payable Credit, and Accounts Receivable Debit
Which 5 accounts are affected due to the Cash Receipts Journal?
Cash in Bank, Accounts Receivable, Sales Tax Payable, Sales, and Sales Discounts