What are the 2 special journals that we've learned about?
What is purchases and cash payments?
100
Each unit of ownership in a corporation is known as a ______ of stock
What is a share of stock?
100
Only ___________ are recorded in the cash payments journal.
What is cash payments
100
A journal used to record only one kind of transaction
What is a special journal?
100
Only ___________ are recorded in the purchases journal.
What is purchases on account.
200
A form prepared by the customer showing the price deduction taken by the customer for returns and allowances.
What is Debit memorandum
200
Purchases discount is increased by a __________ entry
What is credit.
200
What does n/30 represent?
What is the total amount of the invoice must be paid in 30 days.
200
An account that reduces a related account on the financial statement.
For example: Purchases discounts reduces purchases
What is a contra account
200
If the actual petty cash on hand is $57 but the records show $55 is there a cash short or cash over? and should it be debited or credited?
(it=the cash short or over)
What is the amount on hand is over. the amount should be credited.
300
Trade discounts are normally recorded in the _________ debit column and the _________ credit column
What is general and cash
300
There are known as total shares of ownership in a corporation
What is capital stock?
300
A deduction that a vendor allows on the invoice amount to encourage prompt payment
What is cash discount?
300
An organization with the legal rights of a person and which may be owned by many persons.
What is corporation?
300
A cash discount on purchases taken by the customer
What is purchases discount?
400
Supplies bought for use in a business are recorded in the __________________
What is supplies account
400
When purchase are recorded at their cost, including any related shipping costs and taxes, the __________ accounting concept is being used.
What is historical cost.
400
Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable.
What is purchases return?
400
In the purchases journal __________ is debited and __________ is credited.
What is purchases is debited and a/p is credited.
400
What does 2/10 represent?
What is 2% discount if paid within 10 days.
500
Purchases returns and allowances decreases the amount of ________
What is purchases?
500
The source document for a cash purchase is a _______
What is check?
500
An invoiced used as a source document for recording a purchase on account transaction
What is purchase invoice?
500
if merchandise is purchased for $1000 on August 1, with terms of sale of 2/10, n/30, the amount due to the vendor on August 9 is _____________
What is $980
500
A merchandising business that sells to those who use or consume the goods.