Chapter 11 Review

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

• Credit Memorandum

• Purchases Return

• Retained Earnings

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

• Declaring a dividend

• Credit memorandum

• Debit memorandum

• Sales allowance

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

• General journal

• Purchases return

• Board of directors

• Sales allowance

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

• Debit memorandum

• General journal

• Retained earnings

• Declaring a dividend

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

• General journal

• Dividends

• Sales return

• Credit memorandum

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

• Sales return

• Sales allowance

• Declaring a dividend

• Purchases returns

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

• General journal

• Retained earnings

• Purchases return

• Purchases allowance

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

• Credit memorandum

• Dividends

• Purchases allowance

• Debit memorandum

Earnings distributed to stockholders.

• Declaring a dividend

• Dividends

• Retained earnings

• 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.

• Purchase allowance

• Purchase return

• Sales allowance

• Sales return