Journalizing Purchases and Cash Payments

A deduction that a vendor allows on the invoice amount to encourage prompt payment

When several journals are used, use an abbrv in the Post Ref column of the ledger to show which

A journal used to record only one kind of transaction

Purchases Returns and Allowances is a contra account to Cost of Merchandise

The purchases account is increased by a credit, decreased by a debit

$300 Petty Cash fund, expenses were $224 and $74. One part of journal entry would be

Trade discounts normally are recorded in the purchases discount account

A merchandising business that sells to those who use or consumer goods

Total shares of ownership in a corporation

The purchases account is classified as

Supplies bought for use in a business are recorded in the

Purchases Discount is increased by a credit

A form prepared by the customer showing the price deduction taken for returns and allowances

An organization with the legal rights of a person and owned by many persons

Since contra accounts offset their related accounts, their normal balances are

Purchases Returns and Allowances

Purchases recorded at their cost, including shipping & taxes. This is Historical Cost concept

Credit allowed for the purchase price of returned merchandise

A cash discount on purchases taken by a customer

An invoice used as a source document for recording a purchase on account transaction

If actual Petty Cash on hand is $53 but it should be $55, you have a cash over

Aug 1: List Price: $1500, Invoice: $900, Terms: 2/10, n/30. Pymt made on Aug 17. What is owed?

The source document for a cash purchase is

Merch. purchased for $1000 on Aug/1, terms 2/10, n/30. What is owed on Aug/9?

1/10, n/30 means the customer can take a 1% discount if they pay within 30 days

Each unit of ownership in a corporation