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