Terms in this set (...)
Goods that a business purchases to sell
A business that purchases and sells goods.
Retail Merchandising Business
A merchandising business that sells to those who use or consume goods.
Wholesale merchandising business
A business that buys and resells merchandise to retail merchandising businesses.
An organization with the legal rights of a person and which many persons may own.
Share of Stock
Unit of ownership in a corporation.
Total shares of ownership.
An owner of one or more shares of the corporation.
A journal used to record only one type of transaction.
Cost of Merchandise
The price a business pays for goods it purchases to sell.
The amount added to the cost of merchandise to establish the selling price.
A business from which merchandise is purchased or supplies or other assets are bought.
Purchase on Account
A transaction in which the merchandise purchased is to be paid for later.
A special journal used to record only purchases of merchandise on account.
Special Amount Column
A journal amount column headed with an account title.
Source document for a purchase on account.
Terms of Sale
An agreement between a buyer and seller about payment for merchandise. 2/10, n/30
Cash Payments Journal
A special journal used to record only cash payments.
A deduction that vendors allows on the invoice amount to encourage prompt payment.
A cash discount on purchases taken by the customer.
General Amount Columns
A journal amount column that is not headed with an account title.
The retail price listed in a catalog or on an internet site.
A reduction in the list price granted to customers.
An account that reduces a related account on a financial statement.
A petty cash on hand amount that is less than a recorded amount. (Debit Balance)
A petty cash on hand amount that is more than a recorded amount (Credit Balance)
Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable.
Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable.
A form prepared by the customer showing the price reduction taken by the customer for returns and allowances.
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