Chap 8 Flashcards
Accounts Payable Ledger
a subsidiary ledger that contains a separate account for each creditor
Cash Discount
a discount offered by suppliers for payment received within a specified period of time.
Cost of Goods Sold
the actual cost to the business of the merchandise sold to customers
Freight In account
an account showing transportation charges for items purchased
Purchase Allowance
a price reduction from the amount originally billed; purchaser KEEPS goods
Purchase Invoice
a bill received for goods purchased
Purchase Order
an order to the supplier of goods specifying items needed, quantity, price, and credit terms
Purchase Requisition
a list sent to the purchasing department showing the items to be ordered
Purchase Return
return of unsatisfactory goods
Purchases Account
an account used to record cost of goods bought for resale during a period
Purchases Discount
a cash discount offered to the customers for payment within a specified period
Purchases Journal
a special journal used to record the purchased of goods on credit
Receiving Report
a form showing quantity and condition of goods received.
Sales Discount
a cash discount offered by the supplier for payment within a specified period
Sales Invoice
a supplier’s billing document
