Ch 7 - Accting Sales and A/R VOCAB Flashcards
Define accounts receivable ledger.
subsidiary ledger that contains credit customer accounts
Define charge-account sales.
Sales made through the use of open-account credit or one of various types of credit cards
Define contra revenue account.
An account with a debit balance, which is contrary to the normal balance for a revenue account.
Define control account.
account that links a subsidiary ledger and the general ledger since its balance summarizes the balances of the accounts in the subsidiary ledger
Define credit memorandum.
note verifying that a customers’ account is being reduced by the the amount of a sales return or sales allowance plus any sales tax that may have been involved
Define invoice.
customer billing for merchandise bought on credit
Define list price.
established retail price
Define manufacturing business.
business that sells goods that it has produced.
Define merchandise inventory.
stock of goods a merchandising business keeps on hand.
Define merchandising business.
business that sells goods purchased for resale
Define net price.
list prices less all trade discounts.
Define net sales.
difference between the balance in the Sales account and the balance in the Sales Returns and Allowances account
Define open-account credit.
system that allows the sale of services or goods with the understanding that payment will be made at a later date.
Define retail business.
business that sells directly to individual customers.
Define sales allowance.
reduction in the price originally charged to customers for goods or services.
