How can we help?

You can also find more resources in our Help Center.

chapter 9

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.
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.
Term Of Sale
Agreement between buyer and seller about payment for merchandise.
Cash Payment 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 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
Purchase Discount
A cash discount claimed by a buyer for prompt payment of a balance due.
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