29 terms

Accounting - Chapter 9 Vocabulary

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Terms in this set (...)

merchandise
Goods that a merchandising business purchases to sell
merchandising business
A business that purchases an sells goods
retail merchandising business
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 business
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 payments
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 a customer
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 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