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Accounting Terms
InternationalSales
Sales OnAccount
CashReceipts
GeneralJournal
A special journal used to record only sales of merchandise on
account.
Sales Journal
A deduction that a vendor allows on the invoice amount to
encourage prompt payment on sales.
Sales discount
Credit allowed a customer for the sales price of returned
merchandise, resulting in a decrease in the vendor’s accounts
receivable.
Sales return
A form signed by a buyer at the time of a sale of merchandise
in which the buyer promises to pay the seller a specified sum of money, usually at a stated
time in the future.
Trade acceptance
A receipt signed by the authorized agent of a
transportation company for merchandise received that also
serves as a contract for the delivery of the merchandise.
Bill of Lading
Goods or services shipped out of a seller’s home country to a
foreign country.
exports
A letter issued by a bank guaranteeing that a named
individual or business will be paid a specified amount provided
stated conditions are met.
Letter of credit
A written, signed, and dated order from one party ordering
another party, usually a bank, to pay money to a third party.
draft
When recording an international cash sale, these accounts are
affected in this way and recorded in this journal.
Cash – DebitSales – CreditCash Receipts
When receiving a time draft for an international sale, these accounts are affected and recorded in this journal.
Time Drafts Receivable – DebitSales Credit
General Journal
The three columns in the sales journal.
Accounts Receivable DebitSales Credit
Sales Tax Payable Credit
The source document for a sale on account.
Sales Invoice
The accounting concept that states: regardless of when cash is
received, revenue should be recorded when merchandise is
sold.
Realization of Revenue
A business owes the sales taxes collected to this.
State Government
When organizations like schools do not have to pay sales tax, they
are said to be this.
Exempt
When recording cash and credit card sales, this is placed in the
account title column.
Check Mark
The source document used when recording cash and credit card
sales.
Cash Register Tape
The amount to place in the sales tax payable debit column in the transaction receiving cash on account from Ten Company, $1924.76, covering S176 for
$1944.00 ($1,800 plus sales tax, $144), less 1% discount and sales
tax, Receipt 297.
$1.44
A contra account to sales
Sales Discount
A deduction on the invoice amount is given for this reason.
To encourage early payment
The original copy of a credit memorandum is given to the
customer. The second copy is used as the source document.
This concept is applied.
Objective Evidence
The normal balance of the Sales Returns and Allowances account.
Debit
The best order to post from the journals.
Sales JournalPurchases JournalGeneral Journal
Cash Receipts JournalCash Payments Journal
A listing of customer accounts, account balances, and total
amount due from all customers.
Schedule of Accounts Receivable
Business transactions are stated in numbers that have common
values.
UNIT OF MEASUREMENT