Merchandise is goods that a business purchases to sell.
Merchandising business is a business that purchases and sells goods.
Retail merchandising business is a merchandising business that sells to those who use or consume the goods.
Wholesale merchandising business is a business that buys and resells merchandise to retail merchandising businesses.
Corporation is an organization with the legal rights of a person and which many persons may own.
Share of stock is that each unit of ownership in a corporation.
Capital stock is total shares of ownership in a corporation.
Stockholder is an owner of one or more shares of a corporation.
Special journal is a journal used to record only one kind of transaction.
Cost of merchandise is the price a business pays for goods it purchases to sell.
Markup is the amount added to the cost of merchandise to establish the selling price.
Vendor is a business from which merchandise is purchased or supplies or other assets are bought
Purchase on account is a transaction in which the merchandise purchased is to be paid for later.
Purchases journal is a special journal used to record only purchases of merchandise on account.
Special amount column is a journal amount column headed with an account title.
Purchase invoice is an invoice used as a source document for recording a purchase on account transaction.
Terms of sale is an agreement between a buyer and a seller about payment for merchandise.
Cash payments journal is a special journal used to record only cash payment transactions.
Cash Discount is a deduction that a vendor allows on the invoice amount to encourage prompt payment.
Purchases discount is a cash discount on purchases taken by a customer.
General amount column is a journal amount column that is not headed with an account title.
List price is the retail price listed in a catalog or on an internet site.
Trade discount is a reduction in the list price granted to customers.
Contra account is an account that reduces a related account on a financial statement.
Cash short is a petty cash on hand amount that is less than a recorded amount.
Cash over is a petty cash on hand amount that is more than a recorded amount.
Purchases return is credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s accounts payable.
Purchases allowance is a credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer’s accounts payable.
Debit Memorandum is a form prepared by the customer showing the price deduction taken by the customer for returns and allowances.
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