College Accounting: Chapter 10 - Accounting for Sales and Cash Receipts

A set of vocabulary flashcards covering key terms and definitions from Chapter 10 regarding accounting for sales and cash receipts in College Accounting.

Merchandise Sales Transaction

A transaction involving the transfer of merchandise from one business or individual to another in exchange for cash or a promise to pay cash.

Retailer

A business that sells merchandise to final consumers.

Sales Invoice

A document generated for each sale made by a wholesaler, one copy is sent to the customer and another to accounting.

Credit Memorandum

A document issued by the seller indicating that a customer’s account has been credited for sales returns or allowances.

Sales Returns and Allowances

A contra-revenue account that records sales returns and sales allowances; debited rather than to Sales to track these activities.

Sales Discounts Account

A contra-revenue account that records discounts offered to customers buying merchandise on account.

Accounts Receivable Ledger

A subsidiary ledger containing individual accounts receivable accounts for each customer.

Bank Credit Card Sales

Sales processed through credit cards where cash is available to the business after an electronic deposit is made, less any processing fees.

Sales Tax Payable Account

A liability account that records taxes collected on sales owed to the taxing authority.

Schedule of Accounts Receivable

A listing prepared to ensure the sum of the accounts receivable ledger balances equals the balance in Accounts Receivable in the general ledger.