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Accounting 1 Ch 7
vocab
17
Accounting
Undergraduate 2
04/15/2012

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Term
subsidiary ledger
Definition
group of accounts with a common characteristic
Term
customers' subsidiary ledger
Definition
accounts receivable subsidiary ledger
Term
creditors' subsidiary ledger
Definition
accounts payable subsidiary ledger
Term
control account
Definition
the general ledger account that summarizes subsidiary ledger data
Term
List 4 advantages of a subsidiary ledger
Definition
1. they show in a sigle account transactins affecting one customer or creditor. 2. they free the general ledger of excessive details. 3. they help locate errors in individual accounts. 4. they make possible a division of labor.
Term
special journals
Definition
used in addition to the general journal to record similar types of transcations. Also reduces the time needed to complete the posting process. : ex:sales, cash receipts, purchases, cash payments.
Term
considering special journals, where are correcting, adjusting and closing entries recorded?
Definition
general journal
Term
sales journal
Definition
records sales of merchandise on account. Do not record cash sales here!Do not record credit sales of other assets here (merch only).
Term
how often do companies post to the sales journal
Definition
daily
Term
how often do comapnies post to the general ledger?
Definition
monthly
Term
what does a check mark in the reference column of a special journal mean?
Definition
that the daily posting to the subsidiary account has been made.
Term
cash receipts journal
Definition
record all receipts of cash
Term
When is an account title entered in the 'Account Credited' column?
Definition
1. enter a subsidiary ledger account for accounts receivable transactions. 2. enter a general ledger account for transactions not shown in a special column. 3. otherwise no account is entered in this column
Term
List three types of columns in the cash receipts journal
Definition
1. Debit. 2. Credit. 3. Debit and Credit combined.
Term
List the two debit columns used on the cash receipts journal
Definition
1. Cash. 2. Sales Discounts.
Term
List the 3 credit columns used on the cash receipts journal
Definition
1. Accounts receiable. 2. Sales Revenue. 3. Other Accounts.
Term
List the 1 combined credit/debit column on the cash receipts journal
Definition
Cost of Goods Sold and Inventory
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