Chapter 14-17 Flashcards
A merchandising business produces revenue through a series of transactions called the…
Operating cycle
Sale recorded on account, what is Debit?
Debit Accounts receivable
At the beginning of the accounting period,The dollar amount of merchandise in stock is indicated by..
A debit in the merchandise inventory
Goods bought for resale
Merchandise
Items of merchandise a business has in stock
Inventory
Normal balance of sales account is
Credit
A business that sells to the consumer is a..
Retailer
The time allowed for payment to be made on a credit sale is called its
Term
Journal entry for a cash refund is…
Debit sales return and allowances, credit cash in bank
Sales tax is recorded as a
Credit to sales tax expense
The form that lists the details of a sale is called
A sales slip
A price reduction granted for damaged good kept by the customer is called a
Sales allowance
Charge customers balances are recorded in a ledger called
Accounts receivable
A book that contains detailed data summarized to a controlling accounting in the general ledger is called a
Subsidiary ledger
To make a purchase, charge customers may use…
A credit card
Any merchandise returned for credit or a cash refund is called a…
Sales return
The sale of merchandise that will be paid for at a later date is called a
Sale on account
A transaction in which money comes in to a business is referred to as a
Cash receipt
A levy imposed by most states on the retail sales price of goods and services is a
Sales tax
When a customer pays on account, the accounts affected are
Cash in bank and accounts receivable