Chapter 10 Vocabulary
A person or business to whom merchandise or services are sold.
A tax on a sale of merchandise or services.
A special Journal used to record only sales of merchandise on account.
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.
The report that summarizes the cash and credit card sales of a POS terminal.
A report of credit card sales produced by a POS terminal.
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.
A cash discount on sales granted to a customer for early payment.
Credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts receivable.
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.
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
Source Document for a Credit Card Sale
Source Document from POS Terminal
Terminal Summary (TS)
Source Document for Sales Returns and Allowances
Normal Balance Side of Sales
Normal Balance Side of Sales Discounts
Normal Balance side of Sales Returns and Allowances
Normal Balance Side of Accounts Receivable
List the Contra accounts to Sales
Sales Discounts, Sales Returns and Allowances