Vocab
Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable?
Purchases Allowance
An account that reduces a related account on a financial statement?
Contra Account
a deduction from the invoice amount, allowed by a vendor to encourage early payment
Cash Discount
a special journal used to record only purchases of merchandise on account
Purchases Journal
a journal used to record only one kind of transaction
Special Journal
A form prepared by the customer showing the price deduction taken by the customer for returns and allowances?
Debit Memorandum
A reduction in the list price granted to customers?
Trade Discount
a special journal used to record only cash payment transactions
Cash Payments Journal
a transaction in which the merchandise purchased is to be paid for later
Purchase on Account
an owner of one or more shares of a corporation
Stockholder
Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable
Purchases Return
The retail price listed in a catalog or on an Internet site?
List Price
an agreement between a buyer and a seller about payment for merchandise
Terms of Sale
a business from which merchandise is purchased or supplies or other assets are bought
Vendor
total shares of ownership in a corporation
Capital Stock
A petty cash on hand amount that is more that a recorded amount?
Cash Over
a journal amount column that is not headed with an account title
General Amount Column
an invoice used as a source document for recording a purchase on account transaction
Purchase Invoice
the amount added to the cost of merchandise to establish the selling price
Markup
each unit of ownership in a corporation
Share of Stock
A sale in which cash is received for the total amount of the sale at the time of the transaction?
Cash Short
a cash discount on purchases taken by a customer
Purchases Discount
a journal amount column headed with an account title
Special Amount Column
the price a business pays for goods it purchases to sell
Cost of Merchandise
What word would you use to describe a man who does not have all his fingers on one hand?
Normal, because people usually have half their fingers on one hand.