New Accounts
Revenue account for a merchandising firm
Sales
Accounts where you find the detail of who you owe money to
Subsidiary Accounts Payable Ledger
Accounts where you see the detail of how much your customers owe you
Subsidiary Accounts Receivable ledger
What does F.O.B. stand for in the freight options?
Free on Board
What current asset is goods that a company intends to sell?
Merchandise Inventory
What is the report where we list who we owe and how much we owe them to compare to our Accounts Payable in the general ledger
Schedule of Accounts Payable
What is the report called where we list our customers and how much they owe us to compare the balance to our Accounts Receivable in the general ledger
Schedule of Accounts Receivable
Credit terms 3/10, n/30 means what
3% off in the 10 day discount period or
net due in 30 days or credit period
What is the expense associated with selling merchandise?
Cost of Goods Sold
What freight is the buyer's responsibiity?
FOB Shipping Point
What freight is the seller's responsibility?
FOB Destination
This format shows detailed computations of net sales, gross profit and other cost and expenses. It is one of the three financial statements
Multiple step Income Statement
Sales Discount
How many journal entries does the buyer complete with they purchase merchandise
One
How many journal entries does the seller make when they make a sale?
Two
Sales less sales discounts and sales returns and allowances
Net Sales
Contra revenue account used by seller when a reduction in price is allowed or merchandise is returned
Sales Returns and Allowance
What account do you debit when the buyer is responsible for freight
Merchandise Inventory
Delivery expense for the seller
Transportation Out, Freight Out, or Delivery Expense
Net sales less cost of goods sold equals what?
Gross Profit