Accounting Chapter 10: Journalizing Purchases and Cash Payments Using Special Journals

vendor

a business from which merchandise is purchased or supplied or other assets are bought

partnership

a business in which two or more persons combine their assets and skills

wholesale merchandising business

a business that buys and resells merchandise to retail merchandising businesses

merchandising business

a business that purchases and sells goofs

special amount column

a journal amount column headed with an account title

general amount column

a journal amount column that is not headed with an account title

special journal

a journal used to record only one kind of transaction

retail merchandising business

a merchandising business that sells to those who use or consume the goods

cash payments journal

a special journal used to record only cash payment transactions

purchase journal

a special journal used to record only purchases of merchandise on account

terms of sale

an agreement between a buyer and a seller about payment for merchandise

purchase invoice

an invoice used as a source document for recording a purchase on account transaction

markup

the amount added to the cost of merchandise to establish the selling price

cost of merchandise

the price a business pays for goods it purchases to sell

historical cost

when the actual amount paid for merchandise or other items bought is recorded

partner

each member of a partnership

cash receipts journal

for all cash receipts

general journal

for all other transactions

sales journal

for all sales of merchandise on account

merchandise

goods that a merchandising business purchases to sell