Accounting 2 Unit 4 Vocab

A ____ is used to record a specific kind of business transaction.

Special Journal

A ____ is a ledger that is summarized in a controlling account in the general ledger.

Subsidiary Ledger

Shipping terms of ____ specify that the buyer pays the shipping charge from the supplier's shipping location.

FOB Shipping Point

The items of merchandise a business has in stock are its ____.

Inventory

A ___ is a document that lists the credit terms and the quantity, description, unit price, and total cost of the items shipped to the buyer.

Invoice

____ is the process of determining whether that amounts of cash recorded in a business's accounting records and in its checkbook agree.

Proving Cash

A business receives a ____ when it keeps unsatisfactory merchadise buy pays less than its original price.

Purchase Allowance

____ is a cash discount offered by the supplier for early payment.

Purchase Discount

A written offer to a supplier to buy certain items is called a ____.

Purchase Order

Merchandise returned by the buyer to the supplier for full credit is called a ____.

Purchase Return

A price reduction offered to a customer by a business for keeping damaged or defective merchandise is a ____.

Sales Allowance

A ____ is a special journal used to record only the sale of merchandise on account.

Sales Journal

A ____ is full credit or a cash refund offered to a customer for any returned merchandise.

Sales Return

A ____ is a list of all creditors in the accounts payable ledger, the balance in each account, and the total amount owed.

Schedule of Account Payable

A ____ lists all the accounts in the accounts receivable subsidiary ledger and their balances.

Schedule of Accounts Receivable

A source document used by the buyer to notify the seller that the seller's account is to be decreased is called a ___.

Debit Memorandum

The period of time within which an invoice must be paid in order to receive an amount off the invoice price is called an ____.

Discount Period

The ___ is a ledger that contains all creditor accounts and the amount owed to each.

Accounts Payable Subsidiary Ledger

If you wanted to locate a charge customer's account quickly, you would look for it in the _____.

Accounts Receivable Subsidiary Ledger

A reduction in the sales price of an item that is given for prompt payment is a ____.

Cash Discount

The special journal in which all transactions involving incoming cash are recorded is the ___.

Cash Receipts Journal

The balance of a ____ must agree with the balances of the accounts in its related subsidiary ledger.

Controlling Account

A ____ is a source document used to notify a charge customer that the customer's account will be decreased for the amount of the return or allowance.

Credit Memorandum

Shipping terms of _____ specify that the supplier pays the shipping cost to the buyer's location.

FOB Destination

A ____ is a business that sells merchandise to retailers.

Wholesaler