17 terms

Chapters 9-10 Vocabulary

Chapters 9-10 Accounting Vocabulary
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credit memorandum
a form prepared by the vendor showing the amount deducted for returns and allowances
cash short
A petty cash on hand amount that is less than a recorded amount
customer
a person or business to whom merchandise or services are sold
markup
the amount added to the cost of merchandise to establish the selling price
debit memorandum
a form prepared by the customer showing the price deduction taken by the customer for returns and allowances
retail merchandising business
a merchandising business that sells to those who use or consume the goods
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
vendor
a business from which merchandise is purchased or supplies or other assets are bought
cash discount
A deduction that a vendor allows on the invoice amount to encourage prompt payment
wholesale merchandising business
a business that buys and resells merchandise to retail merchandising businesses
list price
The retail price listed in a catalog or on an Internet site
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
contra account
an account that reduces a related account on a financial statement
trade discount
a reduction in the list price granted to customers
sales return
credit allowed a customer for the sale price of returned merchandise, resulting in a decrease in the vendor's accounts receivable
sales allowance
credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor's accounts receivable