| A | B |
|---|
| special journal | A journal used to record only one kind of transaction. |
| purchases journal | Used for all purchases on account. |
| cash payments journal | Used for all cash payments. |
| sales journal | Used for all sales on account. |
| cash receipts journal | Used for all cash receipts. |
| ledger | A group of accounts. |
| merchandising business | A business that purchases and sells goods. |
| posting | Transferring information from a journal entry to a ledger account. |
| debit memorandum | A form prepared by the customer showing the price reduction taken by the customer for returns and allowances. |
| contra account | An account that reduces a related account on a financial statement. |
| cash discount | A deduction that the vendor allows on the invoice amount to encourage prompt payment. |
| bank statement | A report of deposits, withdrawals, and bank balance sent to a depositor by a bank. |
| credit memorandum | A form prepared by the vendor showing the amount deducted for returns and allowances. |
| sales discount | A cash discount on sales. |
| proving cash | Determining that the amount of cash agrees with the accounting records. |
