Question | Answer |
Accounts Receivable Ledger | A separate ledger containing an individual account receivable for each customer, kept in either alphabetical or numerical order. |
Cash Discounts | Discounts to encourage prompt payment by customers who buy merchandise an account. |
Controlling Account | A summary account maintained in the general ledger with a subsidiary ledger (for example, the accounts receivable ledger). |
Credit Memo | A document issued when credit is given for merchandise returned or for allowance. |
Merchandising Business | A business that purchases merchandise such as clothing, furniture, or computers, and sells that merchandise to its customers. |
Sale | A transfer of merchandise from one business or individual to another in exchange for cash or a promise to pay cash. |
Sales Allowances | Reductions in the price of merchandise granted by the seller because of defects or other problems with the merchandise. |
Sales Discounts | To the seller, cash discounts are considered sales discounts. |
Sales Invoice | A document that is generated to bill the customer to whom the sale was made. |
Sales Return | Merchandise returned by the customer for a refund. |
Sales Ticket | A document created as evidence of a sale in a retail business. |
Schedule of Accounts Receivable | An alphabetical or numerical listing of customer accounts and balances, usually prepared at the end of the month. |