Chapter 8 Terms 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 originally billed.
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 customer for payment within a specified period.
Purchases Returns and Allowances
A contra expense account where purchase returns and purchase allowances are recorded.
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.
