Flashcards in Ch 7 - Accting Sales and A/R VOCAB Deck (24):
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
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.
Define sales journal.
special journal used to record sales of merchandise on credit.
Define sales return.
firm's acceptance of a return of goods from a customer.
Define Sales Returns and Allowances.
1. A contra revenue account where sales returns and sales allowances are recorded
2. Sales returns and allowances are subtracted from sales to determine net sales.
Define schedule of accounts receivable.
listing of all balances of the accounts in the accounts receivable subsidiary ledger.
Define service business.
business that sells services.
Define special journal.
journal used to record only one type of transaction
Define subsidiary ledger.
ledger dedicated to accounts of a single type and showing details to support a general ledger account.
Define trade discount.
reduction from list price