DHS Accounting Chapter 9 Review

Prepared by the customer showing the price deduction taken for returns and allowances

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

An organization with the legal rights of a person and which may be owned by many persons.

Source document for cash purchase:

A journal used to record only one kind of transaction.

Each unit of ownership in a corporation.

Total shares of ownership in a corporation.

Purchased supplies on account, what is debited?

The normal balance of a purchases account.

Classify purchases:

Normal balances of contra accounts are:

What journal are trade discounts typically recorded?

A cash discount on purchases taken by a customer.

A reduction in the list price granted to customers.

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

Credit allowed for the purchase price of returned mdse, resulting in a decrease in the AP

Recording purchases at their cost, including any shipping costs and taxes represents

petty cash has an actual on hand total of $75, but records show it should be $73, this means

An account that reduces a related account on a financial statement.

What discount is given with the following terms 1/15, n/30