Chapter 9 Terms

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29 terms · vocabulary

merchandise

the goods that a business purchases to sell

merchandising business

a business that purchases and sells goods

retail merchandising business

a merchandising business that sells to those who use or consume the goods

wholesale merchandising business

a business that uys and resells merchandise to retail merchandising businesses

corporation

an organization with the legal rights of a person and which many persons may own

share of stock

each unit of ownership in a corporation

capital stock

total shares of ownership in a corporation

stockholder

an owner of one of more shares of a corporation

special journal

a journal used to record only one kind of transaction

cost of merchandise

the price a business pays for goods it purchases to sell

markup

the amount added tot he cost of merchandise to establish the selling price

vendor

a business from which merchandise is purchaed or supplies or other assets are bought

purchase on account

a transaction in which the merchandise purchased is to e paid for later

purchases journal

a special journal used to record only purchases of merchandise on account

special amount column

a journal amount column headed with an account title

purchase invoice

an invoice used as a source document for recording a purchase on account transaction

terms of sale

an agreemtn between a buyer and a seller about payment for merchandise

cash payments journal

a special journal used to record only cash payment transactions

cash discount

a deduction that a vendor allows on the invoice amount to encourage prompt payment

purchases discount

a cash discount on purchases taken by a customer

general amount column

a journal amount column that is not headed with an account title

list price

the retail price listed in a catalog or on an Internet site

trade discount

a reduction in the list price granted to customers

contra account

an account that reduces a related account on a financial statement

cash short

a petty cash on hand amount that is less than a recorded amount

cash over

a petty cash on hand amount that is ore than a recorded amount

purchases return

credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable

purchases allawance

credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account payable

debit memorandum

a form prepared by the customer showing the price deduction taken by the customer for returns and allowances

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