30 terms

Chapter 9

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Terms in this set (...)

Merchandise
Goods that a business purchases to sell
Merchandising Business
A business that purchases and sells goods
Retail Merchandising Business
Sells to those who use or consume the goods
Wholesale Merchandising Business
Buys and sells merchandise to Retail Merchandising Business
Corporation
An organization with the legal rights of a person which many persons may own
Share of stock
Each unit of ownership corporation
Capital Stock
Total shares of ownership in a corporation
Stock Holder
An owner of one or more shares in 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 to the cost of merchandise to establish the selling price
Vendor
A business for which merchandise is purchased or supplies or other assets are bought
Purchase on Account
A transaction in which the merchandises purchase is to be payed 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
(Concept) Objective Evidence
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Purchase Invoice
An invoice used as a source document for recording a purchase on account transaction.
Terms of Sale
An agreement 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 more than the recorded amount
Purchases Return
Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account Payable
Purchases Allowance
Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customers accounts payable
Debit Memorandum
A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance