Chapter 15 - Accounting for Purchases and Cash Payments

Front

Goods that a business purchases in order to sell.

Back

merchandise

Front

An account in a general ledger that summarizes all accounts in a subsidiary ledger.

Back

controlling account

Front

2/10, n30 means....

Back

2% discount if paid in 10 days, net due 30 days

Front

The total of accounts in the accounts payable subsidiary ledger equals the balance of the controlling account, Accounts Payable

Back

True

Front

What is the source document for merchandise purchased on account?

Back

Purchase invoice

Front

A document prepared to order items requested with specific details is called a(n):

Back

purchase order

Front

Free on board (FOB) destination means that the __ pays the transportation charges.

Back

seller

Front

Which form would list the items included in a shipment?

Back

packing slip

Front

A price reduction received by a business for unsatisfactory merchandise kept is a(n);

Back

purchases allowance

Front

__ contains accounts for all creditors and the amount owed to each.

Back

accounts payable subsidiary ledger