Unit 9-4

Question 1

cash payments journal

Answer 1

A special journal used to record only cash payment transactions.

Question 2

list price

Answer 2

The retail price listed in a catalog or on an Internet site.

Question 3

trade discount

Answer 3

A reduction in the list price granted to a merchandising business.

Question 4

net price

Answer 4

The price after the trade discount has been deducted from the list price.

Question 5

cash discount

Answer 5

A deduction that a vendor allows on an invoice amount to encourage prompt payment.

Question 6

general amount column

Answer 6

A journal amount column that is not headed with an account title.

Question 7

discount period

Answer 7

The period of time during which a customer may take a cash discount.

Question 8

purchases discount

Answer 8

When a company that has purchased merchandise on account takes a cash discount.

Question 9

contra account

Answer 9

An account that reduces a related account on a financial statement.