Accounting Chapter 9 Vocabulary

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

A business from which merchandise, supplies, or other assets are purchased

A reduction in the list price granted to a merchandising business

The retail price listed in a catalog or on an Internet site.

The owner of one or more shares of stock

A special journal used to record only purchases of merchandise on account.

A journal amount column headed with an account title

When the petty cash ACTUAL amount is LESS than the RECORDED amount

The goods a business purchases to sell

A merchandising business that sells to those who use or consume the goods.

A business that purchases and sells goods

When the petty cash actual amount is greater than the recorded amount

A business that buys and resells merchandise primarily to other merchandising businesses.

A journal amount column that is not headed with an account title

The amount added to the cost of merchandise to establish the selling price

Each unit of ownership in a corporation

An account in the general ledger that summarizes all accounts in a subsidiary ledger

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

When a company that has purchased merchandise on account takes a cash discount

A special journal used to record only cash payment transactions

The maximum outstanding balance allowed to a customer by a vendor

A transaction in which the items purchsed are to be paid for later.

Credit for PART of the purchase price of merchandise that is not returned

An account that reduces a related account on a financial statement

An organization with the legal rights of a person which many persons or corporations may own.

The amount a business pays for goods it purchases to sell.

An agreement between a buyer and a seller about payment for merchandise

A credit for the purchase price of returned merchandise, resulting in a ⇩ in the customer's AP

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

 A journal used to record only one kind of transaction

TOTAL shares of ownership in a corporation

The subsidiary ledger containing VENDOR accounts