24 terms

Accounting 1 Ch. 9 Vocab

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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
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
An amount added to the cost of the product to create a price at which the channel member will sell the product
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
Purchases 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
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