| A | B |
|---|
| Cost of Merchandise | the amount a business pays for goods it purchases to sell. |
| Requisition | A form requesting the purchase of merchandise |
| Purchase Order | A form requesting that a vendor sell merchandise to a business. |
| Special Journal | a journal used to record only one kind of transaction. |
| Purchase on account | A transaction in which the items purchased are to be paid for later. |
| Purchases journal | A special journal used to record only purchases of merchandise on account. |
| Special amount column | A journal amount column headed with an account title. |
| Purchase invoice | An invoice used as a source document for recording a purchase on account transaction. |
| Terms of sale | An agreement between a buyer and a seller about payment for merchandise |
| Due Date | The date by which an invoice must be paid. |
| Cash payments journal | A special journal used to record only cash payment transactions. |
| list price | The retail price listed in a catalog or on an Internet site. |
| trade discount | A reduction in the list price granted to a merchandising business |
| net price | The price after the trade discount has been deducted from the list price. |
| cash discount | A deduction that a vendor allows on an invoice amount to encourage prompt payment. |
| general amount column | A journal amount column that is not headed with an account title. |
| discount period | The period of time during which a customer may take a cash discount. |
| purchases discount | When a company that has purchased merchandise on account takes a cash discount. |
| contra account | An account that reduces a related account on a financial statement. |
| schedule of accounts payable | A listing of vendor accounts, account balances, and the total amount due to all vendors. |
