| A | B |
|---|
| Subsidiary ledger | a ledger that is summarized in a single general ledger account |
| Accounts receivable ledger | a subsidiary ledger containing only accounts for charge customers |
| Accounts payable ledger | a subsidiary ledger containing only accounts for vendors from whom merchandise is purchased on account or other items are bought on account |
| Merchandise inventory | the amount of goods on hand for sale to customers |
| Book value | the difference between an asset’s account balance and its related contra account balance |
| 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 a plant asset’s useful life |
| Straight-line method of depreciation | charging an equal amount of depreciation expense for a plant asset in each year of useful life |
| Book value of a plant asset | the original cost of a plant asset minus accumulated depreciation |
| Controlling account | an account in a general ledger that summarizes all accounts in a subsidiary ledger |
| Schedule of accounts receivable | a listing of customer accounts, account balances, and total amount due from all customers |
| Schedule of accounts payable | a listing of vendor accounts, account balances, and total amount due all vendors |
| Uncollectible accounts | accounts receivable that cannot be collected |
| Book value of accounts receivable | the difference between the balance of Accounts Receivable and its contra account, Allowance for Uncollectible Accounts |
| Plant assets | assets that will be used for a number of years in the operation of a business |
| Estimated salvage value | he amount an owner expects to receive when a plant asset is removed from use |
| Accumulated depreciation | the total amount of depreciation expense that has been recorded since the purchase of a plant asset |
