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29 terms

Chapter 9, Husnick

STUDY
PLAY
Merchandise
goods that a business purchases to sell
Merchandising Business
a business that purchases and 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 businesses
Corporation
an organization with the legal rights of a person and which many persons may own
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 that a vendor allows on the invoice amount to encourage prompt 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 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