Chapter 4 Quiz

A journal used to record only one type of transaction

• cash journal

• sales journal

• special journal

• contra account

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

• purchase invoice

• cash discount

• trade discount

• cash payment

A special journal used to record all payments of cash

• purchase journal

• credit card journal

• cash journal

• sales journal

A transaction in which the purchased merchandise is to be paid for at a later time

• purchase journal

• contra account

• sales journal

• purchase on account

The person or business from which goods or services are purchased

• merchandise

• vendor

• purchase return

• trade discount

A credit given to the business to refund the purchase price of returned merchandise

• purchase return

• sales discount

• sales return

• purchase discount

The price paid by a business for goods it purchases to resell

• vendor

• merchandising business

• cost of merchandise

• trade discount

A journal amount column headed with an account title and used for a specific account

• general amount column

• special journal

• sales journal

• special amount column

A source document used to record a purchase on account

• sales invoice

• cash invoice

• cash receipt

• purchase invoice

A reduction in the list price

• sales discount

• cash discount

• contra account

• trade discount