| A | B |
|---|
| 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 |
| Uncollectible accounts | Accounts receivable that cannot be collected |
