29 terms

Chapter 9 Vocabulary

Journalizing purchases and cash payments
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Terms in this set (...)

Merchandise
goods that a merchandising business purchases to sell
Merchandising business
a business that purchases and sells goods
Retail merchandising buisness
a merchandising business that sells to those who use or consume the goods
wholesale merchandising business
a business that buys and resells merchandise to retail merchandising businesses
corporation
an organization with the legal rights of a person and which may be owned by many persons
share of stock
each unit of ownership in a corporation
capital stock
total shares of ownership in a corporation
stockholder
an owner of one or more shares of 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 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
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
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 from the invoice amount, allowed by a vendor to encourage early 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 discount
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 a recorded amount
purchases return
credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's accounts payable
purchases allowance
credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's accounts payable
debit memorandum
a form prepared by the customer showing the price deduction taken by the customer for returns and allowances