Accounting I Chapter 9 Cengage

Business from which merchandise is purchased.

• purchase order

• vendor

• subsidiary ledger

• special journal

Journal that records only one kind of transaction.

• general jounral

• purchases journal

• subsidiary ledger

• special journal

Maximum amount allowed to a customer.

• credit limit

• net price

• terms of sale

• discount period

Items purchased to be paid for at a later date.

• merchandise inventory

• purchase order

• merchandise

• purchases on account

List price less discount.

• cash discount

• net price

• terms of sale

• purchases discount

Goods on hand for sale.

• merchandise

• merchandise inventory

• purchases

• contra account

Period of time customer can take cash discount.

• cash discount

• purchases discount

• discount period

• discount

Form requesting vendor sell merchandise.

• purchase order

• requisition sheet

• sales slip

• terms of sale

When a company that purchases merchandise takes a discount.

• purchases discount

• cash discount

• discount period

• net price

Agreement about payment.

• list price

• terms of sale

• net price

• cash discount