A merchandising business buys goods and sells them to customers for a profit and and service business provides a service for the public for a fee.
What is the difference between a merchandising business and service buisness?
100
Assets- Merchandise Inventory
Revenue- Sales, Sales Returns and Allowances, and sales discounts
Liability- Sales Tax Payable
What is merchandise Inventory, sales, sales returns, and allowances, sales Tax payable classified as?
100
A charge customer is to whom a sale on account is made.
What is a charge customer?
100
It represents inventory in the general ledger, its an asset, and the normal blance is a debit.
What is merhandise inventory account?
100
These accounts and source document are used to record cash sales.
What is cash in bank, sales, sales tax payable, and tape?
200
A retailer is a business that sells to the final user and the wholesaler is a business that sells to retailers.
What is the difference between a wholesaler and a retailer?
200
Businesses collect sales tax and record it as a liability and later send a check to the state for the sales tax collected.
How does a merchandising business act as a collection agency for the state government?
200
Terms that set out the time allowed for payment for a sale on account.
What is credit terms?
200
It used to record the amount of the merchandise sold and it is a revenue account.
What is sales account?
200
These accounts and source document are used to record cash received to apply on account.
What is cash in bank, accts. rec.(controlling and subsidery), and rececipt?
300
The slash indicates that two accounts are debited: Accounts receivable (controlling) and Accounts Receivable-'charger customer'(subsidary).
What is a diagonal line drawn in the posting reference box?
300
Accts. Rec.(controlling and subsidery),sales, and sales tax payable.
What four accounts are affected by a sales of merchandise on account?
300
A ledger that is summarized in a controlling account in the general ledger.
What is the subsidiary ledger?
300
It is a liability account that the business uses to keep record of the sales tax owed to the state.
What is sales tax payable account?
300
These accounts and source document are used to record bankcard sales.
What is cash in bank, sales, sales tax payable, and tape?
400
The store receives cash from the bank soon after it deposits the bankcard sales slip. Bankcard sales are record as cash sales.
What is bankcard sales are considered a form of cash sales?
400
These are the source documents for recording cash sales, bankcard sales, and cash received from a charge customer.
What is cash received is recorded on receipts and cash register tapes?
400
The items of merchandise a business has in stock and the goods bought for resale to customers.
What is inventory and merchandise?
400
It is a contra revenue account that reduces revenue earned from sales. This account is used when a charge customer pays for merchandise within time stated.
What is sales discount account?
400
These accounts and source document are used to record a payment received befor time stated.
What is cash in bank, sales discounts, accts. rec.(controlling and subsidery), and receipt?
500
A business offers cash discounts to customers who pay their credit purchases within a certin period.
What is a business offer a cash discount to its customers?
500
These accounts are affected when a business receives a payment from charege customer who has taken a cash discount.
What is cash in Bank, Sales Discount, Accts. Rec.(controlling and subsidery)?
500
Its balance is a decrease to another account.
What is contra account?
500
It is a contra account and decreases the total revenue earned by a business. It keeps track of returns and allowences that are damaged, defective, or unsatifactory merchandise.
What is sales returns and allowences account?
500
These accounts and sources document are used to record the return of murchandise on account.
What is sales returnes and allowances, sales tax payable, accts. rec. (controlling and subsidery), and credit memorandum?