Chapter 15 Vocab

Question 1

A written request to order a specific item or items

Answer 1

Purchase Requisition

Question 2

Is a written offer to a supplier to buy specific items

Answer 2

Purchase Order

Question 3

Includes the date when the transaction was made, and what discounts are applied and the check number

Answer 3

Packing Slip

Question 4

It is the discount that is taken off from the buyer perspective

Answer 4

Purchases Discount

Question 5

The period during which a customer can deduct the discount from the net amount within ten days

Answer 5

Discount Period

Question 6

The cost of merchandise is recorded in the purchases account

Answer 6

Purchases Account

Question 7

The purchases account is a temporary account, classified as a cost of merchandise account

Answer 7

Cost of Merchandise

Question 8

Is Individual accounts that are summarized in the general ledger

Answer 8

Accounts Payable Subsidiary Ledger

Question 9

It has a folder for each month

Answer 9

Tickler File

Question 10

The date it is to be paid

Answer 10

Due Date

Question 11

When a business returns merchandise to the supplier for full credit

Answer 11

Purchases Return

Question 12

Occurs when a business keeps less than satisfactory merchandise and pays a reduced price

Answer 12

Purchases Allowance

Question 13

Is used to notify suppliers of a return or to request an allowance

Answer 13

Debit Memorandum

Question 14

A premium is paid in advance at the beginning of the covered period

Answer 14

Premium

Question 15

Means that the supplier pays the shipping cost to the buyers destination or location

Answer 15

FOB Destination

Question 16

The buyer pays the shipping charge from the supplier’s shipping point

Answer 16

FOB Shipping Point

Question 17

A percentage of the total of the amounts recorded on the bankcard sales slips processed

Answer 17

Bankcard Fee

Question 18

Includes the date the transaction was made, and what discounts are applied and the check number

Answer 18

Processing Stamp