| A | B |
|---|
| corporation | an organization with the legal rights of a person and which may be owned by many persons |
| purchases allowance | credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in accounts payable |
| purchase return | credit allowed for the purchase price of returned merchandise, resulting in a decrease in accounts payable |
| special journal | a journal used to record only one kind of transaction |
| cost of merchandise | the price a business pays for goods it purchases to sell |
| markup | the amount added to the cost of merchandise to establish the selling price |
| vendor | a business for which merchandise is purchased or supplies are bought |
| purchase on account | a transaction in which the merchandise purchased is to be paid for later |
| purchases journal | a special journal used to record only purchases of merchandise on account |
| special amount column | a journal amount column with an account title |
| purchase invoice | an invoice used as a source document for recording a purchase on account transaction |
| terms of sale | an agreement between a buyer and a seller about payment for merchandise |
| cash payment journal | a special journal used to record only cash payment transactions |
| cash discount | a deduction from the invoice amount, allowed by a vendor to encourage early payment |
| purchase discount | a cash discount on purchases taken by a customer |
| list price | the retail price listed in a catalog or an internet site |
| trade discount | a reduction in the list price granted to customers |
| contra account | an account that reduces a related amount on a financial statement |
| cash over | a petty cash on hand amount that is more than a recorded amount |
| cash short | a petty cash on hand amount that is less than a recorded amount |
