click below
click below
Normal Size Small Size show me how
Chapter 11
Term | Definition |
---|---|
General Journal | A journal with two amount columns in which all kinds of entries can be recorded |
FYI – Maintaining equality | A general journal entry posted to a controlling account, will also be posted to a subsidiary ledger account |
Purchases Return | Credit allowed for the purchase price of return merchandise, resulting in a decrease in the customers accounts payable to the vendor |
Purchases Allowance | Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customers accounts payable to vendor |
Debit Memorandum | A form prepared by the costumer showing the price deduction taken by the customer for a return or an allowance |
FYI – Returns & Purchases decrease | the total value of merchandise purchased |
FYI – Purchases Contra Account | Purchases returns and allowances |
FYI – Diagonal line purpose | allows there to be recording of two purchases |
FYI – 4 types of merchandise returned | wrong item, damaged goods, credit on account, cash refund |
Sales Return | Credit allowed to a customer for the sales price of returned merchandise resulting in a decrease in the accounts receivable of the merchandising business |
Sales Allowance | Credit allowed to the customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the Accounts Receivable of the merchandising business |
Credit Memorandum | A form Prepared by the vendor showing the amount deducted for returns and allowances |
FYI – Sales Contra Account | Sales returns and allowances |
Retained Earnings | An amount earned by a corporation and not yet distributed to stockholders |
Dividends | Earnings distributed to stockholders |
Board of Directors | A group of persons elected by the stockholders to govern the corporation |
FYI – Business Entity | The stockholders equity account: Dividends |
Declaring a Dividend | Action by a board of directors to distribute corporate earnings to stockholders |
FYI – Paying of Dividends | Announced on one date, paid on another. |