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chapter 14 vocabulary accounting

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Term
Definition
retailer   a business that sells to the final user  
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wholesaler   a business that sells to retailers  
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merchandise   goods bought for resale  
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inventory   the items of merchandise the business has in stock  
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sales   the amount of merchandise sold  
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sale on account   a sale of merchandise that will be paid for at a later date  
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change customer   the person that the sale on account is to  
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credit cards   issued by a business to charge customers so that they can make purchases  
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sales slip   a form that lists the date of sale, customer account identification, and description and quantity sold  
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sales tax   tax on the retail sale of goods and services  
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credit terms   state the time allowed for payment  
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accounts receivable subsidiary ledger   a ledger that contains an account for each charge customer  
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subsidiary ledger   ledger that contains detailed data summarized to a controlling account in the general ledger  
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controlling account   an account in the general ledger that is equal to the total of all account balances in the subsidiary ledger  
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sales return   any merchandise that is returned for credit or a cash refund  
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sales allowance   a price reduction granted for damaged goods kept by the customer  
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credit memorandum   lists the details of a sales return or allowance  
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contra account   its balance decreases the balance of its related account  
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cash receipt   a transaction in which money is received by a business  
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cash sale   business receives full payment for the merchandise sold at the time of sale  
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cash discount   the amount a customer can deduct from the amount owed for something that was purchased(merchandise)  
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sales discount   the amount a customer can deduct from the amount owed for merchandise if the payment is made within a certain time.  
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Created by: Jmorrison21