| A | B |
|---|
| gross pay | earnings before taxes |
| net pay | earnings after taxes |
| withholding allowance | reduces the amount of income tax withheld |
| FICA | social security tax |
| payroll register | summary of employees' earnings |
| Form W-2 | summary of employee's earnings and withholding |
| retailer | sells to consumer |
| wholesaler | sells to retailer |
| merchandise | goods bought for resale |
| inventory | merchandise the business has in stock |
| sales | revenue account |
| purchases | cost of merchandise |
| subsidiary ledger | detailed data summarized to a controlling account in general ledger |
| sales allowance | price reduction granted for damaged goods kept by customer |
| credit memorandum | decreases a customer's account |
| sales returns and allowances | contra account |
| credit terms | 2/10, n/30 |
| purchase requisition | written request to order something |
| purchase order | written order to buy something |
| packing slip | form that lists items included in the shipment |
| accounts payable | creditors |
| accounts receivable | customers |
| tickler file | folder for invoices for each day of the month |
| debit memorandum | used to notify suppliers of a return |
| premium | cost of insurance protection |
| FOB destination | free on board |
| FOB shipping point | buyer pays shipping cost |
| transportation in | account to handle shipping costs |
| sales journal | record sales of merchandise |
| footing | small pencil figures |
| cash receipts journal | record all cash receipt transactions |
| schedule of accounts receivable | lists charge customers and balances |
| purchases journal | record all purchases on account |
| cash payments journal | record all transactions paid in cash |
| schedul of accounts payable | lists all creditors and balances |
| physical inventory | actual count of all merchandise on hand |
| change fund | bills and coins |
| petty cash fund | small cash payments |
| disbursement | payment |
| replenish | restore to the original balance |
| requisition | request |
| plant assets | long-lived assets |
| current assets | assets that are consumed or converted to cash |
| depreciaton | spreading the cost of an plant asset over its useful life |
| book value | original cost less accumulated depreciation |
| uncollectible account | bad debt |
| promissory note | written promise to pay money at a specific time |
| note payable | note that a business issues to a creditor |
| note receivable | note a business accepts from a credit customer |
| principal/face value | money borrowed |
| maturity date | due date of the note |
| maker | business promising to repay principal & interest |
| maturity value | principal + interest |
| long-term liabilities | debts that become due after one year |
| proceeds | cash received |
| interest income | other income |
