Accounting Semester 2 Vocab
Cost of Merchandise
purchases discounts is classified as this
sales allowance
a price reduction offered to a customer by a business for keeping damaged or defective merchandise
adjustment
an amount added to or subtracted from an account balance to bring it up to date
NSF Check
a check returned by the bank because the drawer's checking account does not have sufficient funds to cover the amount of the check
footing
a column total written in small pencil figures
general journal
a correcting entry would be recorded in this
bank service charge
a fee charged by the bank for maintaining bank records and for processing bank statement items from the depositor
check
a written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the order
quarterly basis
employee's earnings records are kept on a
Form W-2
employers must provide each employee with this which summarizes the employee's earnings and taxes withheld
FICA
is paid by both the employer and the employee on the employee's gross earnings
exemption
the amount deducted from gross earnings for federal income tax each pay period depends on the total earnings, marital status, and number of these an employee claims
net pay
the amount of money actually received by the employee after all deductions are subtracted
pay period
the amount of time for which an employee is paid
packing slip
the form that lists the items included in a shipment of merchandise to a buyer
discount period
the period of time within which an invoice must be paid in order to receive an amount off the invoice must be paid in order to receive an amount off the invoice price
payee
the person or business to whom a check is written
reconciling the bank statement
the process of determining any differences between a bank statement's balance and the checkbook balance
sales slip
the source document for a transaction recorded for sales
accumulated earnings
the year to date gross earnings of an employee