| A | B |
|---|
| Cash discount | a deduction that a vendor allows on an invoice amount to encourage prompt payment |
| Cash payments journal | a special journal used to record only cash payment transactions |
| Contra account | an account that reduces a related account on a financial statement |
| Cost of merchandise | the amount a business pays for goods it purchases to sell |
| Credit limit | the maximum outstanding balance allowed to a customer by a vendor |
| Discount period | the period of time during which a customer may take a cash discount |
| Due date | the date by which an invoice must be paid |
| General amount column | a journal amount column that is not headed with an account title |
| List price | the retail price listed in a catalog or on an Internet site |
| Net price | the price after the trade discount has been deducted from the list price |
| Purchase on account | a transaction in which the items purchased are to be paid for later |
| Purchase invoice | an invoice used as a source document for recording a purchase on account transaction |
| Purchases discount | when a company that has purchased merchandise on account takes a cash discount |
| Purchases journal | a special journal used to record only purchases of merchandise on account |
| Purchase order | a form requesting that a vendor sell merchandise to a business |
| Requisition | a form requesting the purchase of merchandise |
| Schedule of accounts payable | ”a listing of vendor accounts |
| Special amount column | a journal amount column headed with an account title |
| Special journal | a journal used to record only one kind of transaction |
| Terms of sale | an agreement between a buyer and a seller about payment for merchandise |
| Trade discount | a reduction in the list price granted to a merchandising business |
