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Chapters 5&6
Accounting for Merchandising Operations & Inventories and Cost of Sales
17
Accounting
Undergraduate 1
10/24/2008

Additional Accounting Flashcards

 


 

Cards

Term
journal posting for purchasing merchandise with cash
Definition
Merchandise Inventory
    Cash 
Term
buyer views a cash discount as a
Definition
purchase discount
Term
seller views a cash discount as a
Definition
sales discount
Term
journal for how a buyer accounts for a purchase discount. purchases murchandise on credit
Definition
Merchandise inventory
    accounts payable 
Term
journal for paying the amount due on a merchandise purchase on credit, during the discount period
Definition
Accounts payable               full price
    Merchandise Inventory    % discount 
    Cash                            rest of difference.
Term
journal entry for debit memorandum
Definition
accounts payable
    merchandise inventory 
Term
journal entry for when a buyer pays shipping
Definition
merchandise inventory
    cash 
Term
seller's journal when seller is in charge of shipping
Definition
Delivery Expense
    Cash 
Term
in summary, purchases are recorded as debits to _______
Definition
merchandise inventory
Term
journal for when a seller sells merchandise on credit
Definition
Accounts receivable         retail
    sales                                 retail
 
cost of goods sold            cost
    Merchandise Inventory          cost
Term
journal for selling murchandise on credit with discount, before anything received
Definition
Accounts receivable     full retail
    sales                                    full retail 
Term
in seller's journal, when a customer doesn't use his discount to make a payment on a credit purchase
Definition
cash
    accounts receivable 
Term
in a seller's journal, when a customer pays during the discount period
Definition
cash                              net paid
sales discounts               disc amt
    accounts receivable            full price 
Term
in seller's journal, merchandise returned to them
Definition
Sales returns and allowances     retail price
    accounts receivable                      retail price
 
Merchandise Inventory              cost
    cost of goods sold                       cost
Term
in seller's journal, a sales allowance
Definition
Sales returns and allowances      reduction amt
    accounts receivable                         reduction amt
Term
who issues debit memorandum?
Definition
buyer
Term
who issues credit memorandum?
Definition
seller
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