Accounting Chapter 11

Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer's account payable to the vendor.

• purchases allowance

• purchases return

• sales allowance

• sales return

Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account payable to the vendor.

• purchases allowance

• purchases return

• sales allowance

• sales return

Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the accounts receivable of the merchandising business.

• purchases allowance

• purchases return

• sales allowance

• sales return

Credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business.

• purchases allowance

• purchases return

• sales allowance

• sales return

A form prepared by the vendor showing the amount deducted for returns and allowances.

• credit memorandum

• debit memorandum

• general journal

A journal with two amount columns in which all kinds of entries can be recorded.

• credit memorandum

• debit memorandum

• general journal

A form prepared by the customer showing the price deduction taken by the customer for a return or an allowance.

• credit memorandum

• debit memorandum

• general journal

A group of persons elected by the stockholders to govern a corporation.

• board of directors

• declaring a dividend

• dividends

• retained earnings

Action by a board of directors to distribute corporate earnings to stockholders.

• board of directors

• declaring a dividend

• dividends

• retained earnings

Earnings distributed to stockholders.

• board of directors

• declaring a dividend

• dividends

• retained earnings