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Accounting Ch 10

College Accounting Ch 10

QuestionAnswer
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.
Created by: dengler