How can we help?

You can also find more resources in our Help Center.

Advanced Accounting

Chapter 14
STUDY
PLAY
accounts receivable subsidiary ledger
A separate ledger that contains accounts for all charge customers; it is summarized in the Accounts Receivable controlling account in the general ledger.
cash discount
price reduction given to buyers for prompt payment or cash payment
cash receipt
Amount of money that is present in the cash register drawer at the end of the day minus the starting bank
cash sale
A sale in which cash is received for the total amount of the sale at the time of the transaction
charge customer
cutomer whom a sale on account is made
contra account
an account that reduces a related account on a financial statement
controlling account
an account in a general ledger that summarizes all accounts in a subsidiary ledger
credit cards
a card that allows a person to charge at the moment and pay later
credit memorandum
A form prepared by the vendor showing the amount deducted for returns and allowances.
credit terms
Terms for payment on account by the buyer to the seller.
inventory
making an itemized list of merchandise or supplies on hand
merchandise
commodities offered for sale
retailer
a merchant who sells goods at retail
sale on account
a sale for which cash will be received at a later date
sales
income (at invoice values) received for goods and services over some given period of time
sales allowance
credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor's accounts receivable
sales discount
A cash discount on sales taken by a customer
sales return
credit allowed a customer for the sale price of returned merchandise, resulting in a decrease in the vendor's accounts receivable
sales slip
a form that lists the details of a sale
sales tax
a tax based on the cost of the item purchased and collected directly from the buyer
subsidiary ledger
details of an account supporting the amount stated in the general ledger
wholesaler
someone who buys large quantities of goods and resells to merchants rather than to the ultimate customers