| A | B |
|---|
| Accounts Payable Ledger | a group of creditor accounts |
| Creditors | People or businesses to whom money is owed |
| Purchase of Account | buying merchandise on credit |
| Schedule of Accounts Payable | A list of creditors with the amounts owed to them; includes their accounts with balances |
| Purchases Journal | a record of purchases on account; the invoice date is entered in the Invoice Date column; source document is the purchase invoice; approved purchase invoices are recorded here |
| Cash Payments Journal | a record of cash payments; check stubs are the source documents for entries in this journal |
| Debit Memo | a form used by the buyer to notify a creditor of a return or an allowance |
| Purchases Returns and Allowance Journal | a record of all credit memos received; a creditor's account is debited for a purchase return or allowance |
| Balance | The amount of stock on hand |
| Purchase Invoice | What the buyer calls a bill from a vendor |
| Debit column | Where you record cash paid to a creditor or returns and allowances, credit memos; subtracted from the previous balance |
| Credit column | Where you record purchases on the account are posted in the credit column; added to the previous balance |
| Invoices | Filed by date due; when paid it is filed by creditor name |
| Credit Memo | Recorded in the purchases returns and allowances journal; issured for overcharges and shortages |
| Accounts Payable Clerk | Is responsible for the cash payments journal and creditor accounts |
