| A | B |
|---|
| Merchandise | The products or goods a business sells |
| Uncollectible accounts | Accounts receivable that cannot be collected |
| Vendor | The person or business from which goods or services are purchased |
| Cost of merchandise | The price paid by a business for goods it purchases to resell |
| Purchase on account | A transaction in which the purchased merchandise is to be paid for at a later time |
| Purchase invoice | A source document used to record a purchase on account |
| Special journal | A journal used to record only one type of transaction |
| Purchases journal | A special journal that records only purchases on account |
| General amount column | A journal amount column not headed with an account title |
| Special amount column | A journal amount column headed with an account title and used for a specific account |
| Contra account | An account that reduces a related account on a financial statement |
| Trade discount | A reduction in the list price |
| Purchases return | A credit given to the business to refund the purchase price of returned merchandise |
| Cash discount | A deduction that a vendor allows on the invoice amount to encourage prompt payment |
| Cash payments journal | A special journal used to record all payments of cash |
| Customer | A person or business to which merchandise or services are sold |
| Sales journal | A special journal used only to record sales of merchandise on account |
| Sales on account | A sale for which cash will be received at a later date |
| Sales tax | A tax on a sale of merchandise or service. |
| Wholesale | Selling merchandise to retailers |
| Retail | Selling merchandise to the final use |
| Cash sales | A sale in which cash is received for the total amount of the sale at the time of the transaction |
| Sales discounts | A cash discount on sales taken by a customer |
| Cash receipts journal | A special journal used only to record cash receipt transactions |
| Credit card sale | A sale in which a credit card is used for the total amount of the sale at the time of the transaction |
| Point-of-sale (POS) Terminal | A computer used to collect, store and report all the information about a sales transaction |
| Batch report | A report of credit card sales produced by a point-of-sale terminal |
| Batching out | The process of preparing a batch report of credit card sales from a point-of sale terminal |
| Terminal summary | The report that summarizes the cash and credit card sales of a point-of-sale terminal |
| Sales return | Credit allowed a customer to return the sales price of returned merchandise |
| Sales allowance | Credit allowed a customer for part of the sales price of merchandise that is not returned |
| Credit memorandum | Source document listing the details of a sales return or allowance |
| Accounts payable ledger | A subsidiary ledger containing only accounts for vendors from whom items are purchased on account |
| Accounts receivable ledger | A subsidiary ledger containing only accounts for charge customers |
| Accumulated depreciation | The total amount of depreciation expense that has been recorded since the purchase of a plant asset |
| Book value | The difference between an asset’s account balance and its related contra account balance |
| Book value of a plant asset | The original cost of a plant asset minus accumulated depreciation |
| Book value of accounts receivable | The difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts |
| Controlling account | An account in the general ledger that summarizes all accounts in a subsidiary ledger |
| Current assets | Cash and other assets expected to be exchanged for cash or consumed within a year |
| Depreciation expense | The portion of a plant asset’s cost that is transferred to an expense account in each fiscal period during the plant asset’s useful life |
| Estimated salvage value | The amount an owner expects to receive when a plant asset is removed from use |
| Merchandise inventory | Total of goods on hand for sale to customers |
| Plant assets | Assets that will be used for a number of years in the operation of a business |
| Schedule of accounts payable | A listing of vendor accounts with account balances and total amount due all vendors |
| Schedule of accounts receivable | A listing of customer accounts with account balances and total amount due from all customers |
| Straight-line method of depreciation | A method of calculating depreciation which charges an equal amount of depreciation expense for a plant asset in each year of its useful life |
| Subsidiary ledger | A ledger that is summarized in a single general ledger account |
| Merchandising business | A business that purchases and resells goods |
