| A | B |
|---|
| Merchandise | The products or goods a business sells |
| Merchandising business | A business that purchases and resells goods |
| 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 |
