25 terms

Chapter 10 Vocabulary

STUDY
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Customer
A person or business to whom merchandise or services are sold.
Sales Tax
A tax on a sale of merchandise or services.
Sales Journal
A special Journal used to record only sales of merchandise on account.
Cash Sale
Cash is received for the total amount of the sale at the time of the transaction.
Credit Card Sale
A major credit card is used to pay the total amount of the sale at the time of the transaction. Journalized the same as a cash sale.
Point of Sale Terminal
POS - A computer used to collect, store and report all the information of a sales transaction.
Terminal Summary
The report that summarizes the cash and credit card sales of a POS terminal.
Batch Report
A report of credit card sales produced by a POS terminal.
Batching Out
The process of preparing a batch report of credit card sales from a POS terminal.
Cash Receipts Journal
A special journal used to record only cash receipt transactions.
Sales Discounts
A cash discount on sales granted to a customer for early payment.
Sales Return
Credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts receivable.
Sales Allowance
Credit allowed a customer for part of the sales price of returned merchandise not returned, resulting in a decrease in the vendor's accounts receivable.
Credit Memorandum
A form prepared by the vendor showing the amount deducted for returns and allowances.
Calculate sales tax
Total Sales X Sales Tax rate (500 X 2% = $10)
Source Document for Sale on Account
Sales Invoice (S)
Source Document for a Cash Sale
Receipt (R)
Source Document for a Credit Card Sale
Receipt (R)
Source Document from POS Terminal
Terminal Summary (TS)
Source Document for Sales Returns and Allowances
Credit Memorandum
Normal Balance Side of Sales
Credit
Normal Balance Side of Sales Discounts
Debit
Normal Balance side of Sales Returns and Allowances
Debit
Normal Balance Side of Accounts Receivable
Debit
List the Contra accounts to Sales
Sales Discounts, Sales Returns and Allowances