Untitled Flashcards Set

general journal

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

purchases return

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

purchases allowance

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.

debit memorandum

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

sales return

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

sales allowance

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.

credit memorandum

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

retained earnings

An amount earned by a corporation and not yet distributed to stockholders.

dividends

Earnings distributed to stockholders.

board of directors

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

declaring a dividend

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