a ledger that is summarized in a single general ledger account
accounts payable ledger
A subsidiary ledger containing only accounts for vendors from whom items are purchased or bought on account.
accounts receivable ledger
a subsidiary ledger containing only accounts for charge customers
The account in the general ledger that summarizes the balances of the accounts in a subsidiary ledger
schedule of accounts payable
A listing of vendor accounts, account balances, and total amount due all vendors.
schedule of accounts receivable
A listing of customer accounts, account balances, and total amount due from all customers.
an amount earned by a corporation and not yet distributed to stockholders
Earnings distributed to stockholders
board of directors
A group of people elected by the stockholders of a corporation to set the policies for the corporation.
declaring a dividend
action by a board of directors to distribute corporate earnings to stockholders
the amount of goods on hand for sale to customers
accounts receivable that cannot be collected
allowance method of recording losses from uncollectible accounts
Crediting the estimated value of uncollectible accounts to a contra account
the difference between an asset's account balance and its related contra account balance
book value of accounts receivable
the difference between the balance of accounts receivable and its contra account, allowance for uncollectible accounts
cash and other assets expected to be exchanged for cash or consumed within a year
Assets that will be used for a number of years in the operation of a business
the portion of a plant asset's cost that is transferred to an expense account in each fiscal period during a plant asset's useful life
estimated salvage value
the amount an owner expects to receive when a plant asset is removed from use
straight line method of depreciation
charging an equal amount of depreciation expense for a plant asset in each year of useful life
the total amount of depreciation expense that has been recorded since the purchase of a plant asset
book value of a plant asset
the original cost of a plant asset minus accumulated depreciation