Accounting II - Chapter 11 Test Review

Credit allowed for part of the purchase price of merchandise that is not returned.

• Purchases return

• Purchases allowance

Credit allowed for the purchase price of returned merchandise.

• Purchases return

• Purchases allowance

Normal balance of Purchases Returns and Allowances.

• Debit

• Credit

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

• Credit memorandum

• Debit memorandum

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

• Credit memorandum

• Debit memorandum

Credit allowed to a customer for part of the sales price of merchandise that is not returned.

• Sales allowance

• Sales return

Credit allowed to a customer for the sales price of returned merchandise.

• Sales allowance

• Sales return

Normal balance of Sales Returns and Allowances.

• Debit

• Credit

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

• General journal

• Special journal

Earnings distributed to stockholders.

• Retained earnings

• Dividends