Chapter 8 Terms Flashcards Preview

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Flashcards in Chapter 8 Terms Deck (16):
1

Accounts Payable Ledger

A subsidiary ledger that contains a separate account for each creditor.

2

Cash Discount

A discount offered by suppliers for payment received within a specified period of time.

3

Cost of Goods Sold

The actual cost to the business of the merchandise sold to customers.

4

Freight In Account

An account showing transportation charges for items purchased.

5

Purchase Allowance

A price reduction from the originally billed.

6

Purchase Invoice

A bill received for goods purchased.

7

Purchase Order

An order to the supplier of goods specifying items needed, quantity, price, and credit terms.

8

Purchase Requisition

A list sent to the purchasing department showing the items to be ordered.

9

Purchase Return

Return of unsatisfactory goods.

10

Purchases Account

An account used to record cost of goods bought for resale during a period.

11

Purchases Discount

A cash discount offered to the customer for payment within a specified period.

12

Purchases Returns and Allowances

A contra expense account where purchase returns and purchase allowances are recorded.

13

Receiving Report

A form showing quantity and condition of goods received.

14

Sales Discount

A cash discount offered by the supplier for payment within a specified period

15

Sales Invoice

A supplier’s billing document.

16

Schedule of Accounts Payable

A list of all balances owed to creditors.