Ch 7 - Accting Sales and A/R VOCAB Flashcards Preview

Principles of Accounting > Ch 7 - Accting Sales and A/R VOCAB > Flashcards

Flashcards in Ch 7 - Accting Sales and A/R VOCAB Deck (24):
1

Define accounts receivable ledger.

subsidiary ledger that contains credit customer accounts

2

Define charge-account sales.

Sales made through the use of open-account credit or one of various types of credit cards

3

Define contra revenue account.

An account with a debit balance, which is contrary to the normal balance for a revenue account.

4

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

5

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

6

Define invoice.

customer billing for merchandise bought on credit

7

Define list price.

established retail price

8

Define manufacturing business.

business that sells goods that it has produced.

9

Define merchandise inventory.

stock of goods a merchandising business keeps on hand.

10

Define merchandising business.

business that sells goods purchased for resale

11

Define net price.

list prices less all trade discounts.

12

Define net sales.

difference between the balance in the Sales account and the balance in the Sales Returns and Allowances account

13

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.

14

Define retail business.

business that sells directly to individual customers.

15

Define sales allowance.

reduction in the price originally charged to customers for goods or services.

16

Define sales journal.

special journal used to record sales of merchandise on credit.

17

Define sales return.

firm's acceptance of a return of goods from a customer.

18

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.

19

Define schedule of accounts receivable.

listing of all balances of the accounts in the accounts receivable subsidiary ledger.

20

Define service business.

business that sells services.

21

Define special journal.

journal used to record only one type of transaction

22

Define subsidiary ledger.

ledger dedicated to accounts of a single type and showing details to support a general ledger account.

23

Define trade discount.

reduction from list price

24

Define wholesale business

business that manufactures or distributes goods to retail businesses or large consumers such as hotels and hospitals.