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Accounting Chap 11
Vocab
Term | Definition |
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Purchase Return | Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business. |
Purchase Allowance | Reduction off the purchase price of merchandise that is not returned to the vendor, resulting in a decrease in the account payable to the vendor. |
Debit Memorandum | A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance. |
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 | Reduction off the sales price of merchandise to a customer that is not returned, resulting in a decrease in the accounts receivable to the merchandising business. |
Credit Memorandum | A form prepared by the vendor showing the amount deducted for returns and allowances. |
Retained Earnings | An amount earned by a corporation and not yet distributed to stockholders. |
Dividends | Earnings distributed to stockholders. |
Declaring a Dividend | Action by a board of directors to distribute corporate earnings to stockholders. |