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22 terms

Ch 14 vocab

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Accounts Receivable subsidiary ledger
a separate ledger that contains accounts for all charge customers; it is summarized in the Accounts Receivable account in the general ledger
cash discount
A deduction that a vendor allows on the invoice amount to encourage prompt payment.
cash receipt
a transaction in which money is received by a business
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 that set out the time allowed for payment for a sale on account.
inventory
making an itemized list of merchandise or supplies on hand
merchandise
goods that a merchandising business purchases to sell
retailer
A business that sells goods or services directly to the public
sale on account
a sale for which cash will be received at a later date
sales
income received for goods and services over some given period of time
sales allowence
Price reduction for damaged goods.
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
subsidary ledger
A ledger that is summarized in a single general ledger account.
wholesaler
A type of business that buys goods in large amounts and resells them to other businesses in smaller lots.