| A | B |
|---|
| Merchandise | goods that a business purchases to sell |
| Merchandising business | a business that purchases and sells goods |
| Vendor | a business from which merchandise is purchased or supplies or other assets are bought |
| Cost of merchandise | the price a business pays for goods it purchases to sell |
| Purchase on account | a transaction in which the merchandise purchased is to be paid for later |
| Purchase invoice | an invoice used as a source document for recording a purchase on account transaction |
| Special journal | a journal used to record only one kind of transaction |
| Purchases journal | a special journal used to record only purchases of merchandise on account |
| General amount column | a journal amount column that is not headed with an account title |
| Special amount column | a journal amount column headed with an account title |
| Contra account | an account that reduces a related account on a financial statement |
| Trade discount | a reduction in the list price granted to customers |
| Purchases return | credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s accounts payable |
| 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 only cash payment transactions |
