1
A business that buys and sells merchandise for a profit is called a __________.
Merchandiser
What two categories are expenses divided into on an Income statement for a merchandising business?
Cost of Goods Sold and Operating Expenses
A subledger containing all money owed to a company from customers is called the __________.
Accounts Receivable Ledger
Just as there are different types of ledgers, there are different types of journals, based on the type of transaction being recorded. What are these journals called?
Special Journals
At the end of the accounting period, after all sales transactions have been journalized, the sales journal must be ______ and _______.
Totaled and Proved
What does “2/10 net 30” mean on an invoice?
2% Discount if paid within 10 days of the invoice date
What are the two categories of merchandising business?
Retailers and Wholesalers
How is Gross Profit calculated for a merchandising business?
Net Sales - Cost of Goods Sold
A subledger containing all money owed by a company to vendors is called the __________.
Accounts Payable Ledger
The _________ is a special journal of accounting used to record all sales made on account.
Sales Journal
What term is used to describe the instance where retailers collect payment the moment a sale is made?
Point of Sale
What account is used to record a discount on goods sold from a company? And what type of account is it?
Sales Discount, Contra Revenue Account
What type of account is Merchandise Inventory?
Asset
A _____________ is a hybrid business structure that combines the operational and tax characteristics of a sole proprietorship or partnership while limiting the liability of the investors to the amount they invest.
Limited Liability Company
What account is used to summarize balances of subsidiary ledgers into one line on the balance sheet?
Controlling Account
What is a consumption tax paid by the end consumer of goods and services and remitted by the seller to the government called?
Sales Tax
A machine or service used to process the payment of goods or services in real-time is called a ______________.
Point of Sale System
A ___________ is the physical return of a product by a customer in exchange for a full or partial refund.
Sales Return
Total sales minus returns and allowances equals __________.
Net Sales
In a C Corporation, owners of the business are issued units of ownership called ___________.
Shares of Stock
___________ are posted to subsidiary ledgers while their ___________ are posted to the controlling account.
Individual Transactions, Balances
A __________ is a time-stamped document outlining the goods and/or services sold, total amount owed, and the terms and methods of payment allowed.
Sales Invoice
What is a batch report?
A report that summarizes all debit and credit card transactions within a certain time period.
Whenever a company allows a customer to keep merchandise in addition to receiving a full or partial refund, it is referred to as a ________________.
Sales Allowance
The expenses incurred from buying, shipping, and preparing merchandise for sale is referred to as __________.
Cost of Goods Sold
A _____________ is a separate ledger containing individual accounts that share a common characteristic.
Subsidiary Ledger
Subledger account ledger forms are similar to general ledger account forms, but the subledger account only shows its ______________ column.
Normal Balance
After journalizing the transactions in the sales journal, what is the next step in the sale recording process?
Posting the Sale to the proper AR subledger
What journal is used specifically to record cash transactions?
Cash Receipts Journal
What type of account is Sales Returns and Allowances and what financial statement does it appear on?
Contra-Revenue, Income Statement