An account in the general ledger that summariezes accounts
The buyer's written request to a seller for credit
FOB Shipping Point
A shipping term that means that the buyer id responsible for all freight costs while the goods are in transit.
Freight In Account
A general ledger account in which charges for freight.
A ledger containing the financial statement accounts.
A Business document that contains the names and addresses of the buyer an the seller, the date an terms of the sale, a description of the goods, the price of the goods, and the mode of transportation used to ship the goods. The seller calls the invoice a "sales invoice", the buyer calls it a "purchase invoice"
The Price appering in a price catalog issued by the seller.
Goods held for sale to customers. Also called Stock in Trade.
A buisness that earns it revenue by buying goods and then reselling those goods. Also called a trading buisness.
A written request from a buyer of goods to the seller, listing irems needed and a description of the goods.
A written request for gooods to be purchased. It is usually prepared by a department head or manager and sent to a firm's purchasing department.
Purchase Discounts Account
A contra purchases account that is used to records discounts received for prompt payment of merchandise.
A temporary owner's equity account that is used to record the cost of merchandise purchased for resale. Other possible titles include merchandize Purchases of Merchandise.
A special journal used only to record credit purchases of merchandise. (Some businesses design a multicolumn puchases journal that is used to record all credit purchases. not just merchandise.
purchases Returns and Allowances Account
A contra purchases account that is used to record returns and allowances on merchandise purchases.
A report prepared by the receiving department to indicate what goods were received and in what quantity.
Those who own business such as groery stores, drugstores, and restaurants, which sell directly to consumerss.
Schedule Accounts Payable
A listiong of the indicidual creditor balances in the accounts payable ledger.
juornals used by businesses to record transaction that are similar in nature examples are the purchases jounal and the cash payments jounal. Also called Special-purpose Journals.
Ledgers that contain only one type of account; the example in this chapter is the accounts payable ledger.
A percentage reduction from the list price of merchandise.
Those who pruchase goods in bulk from manufactuers and sell them to retailers, other wholesalers, schools and other not for prodit insitulutionm and, at times directly to consumers.
Discounts offered by a seller to encourage early payment by a buyer. TO the seller, cash discounts are sales discounts, to the buyer, cash discounts are purchases.
Account Payble ledger
A subsidiary ledger that lists the individuals accounts of creditors. Also called the creditors's
Cash Payments journals
A special journal used for recording all disbursement of cash.