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Match the Description with the Accounting Terms

Question 85

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Match the description with the accounting terms.

Premises:
A firm's acceptance of a return of goods from a customer
An account that links a subsidiary ledger and the general ledger since its balance summarizes the balances of the accounts in the subsidiary ledger
The list price less all trade discounts
Sales made through the use of open-account credit or one of various types of credit cards
A business that sells goods that it has produced
A listing of all balances of the accounts in the accounts receivable subsidiary ledger
A journal used to record only one type of transaction
A subsidiary ledger that contains credit customer accounts
The difference between the balance in the Sales account and the balance in the Sales Returns and Allowances account
A business that sells services
A ledger dedicated to accounts of a single type and showing details to support a general ledger account
A special journal used to record sales of merchandise on credit
An account with a debit balance, which is contrary to the normal balance for a revenue account
A customer billing for merchandise bought on credit
A business that sells goods purchased for resale
A reduction in the price originally charged to customers for goods or services
A reduction from list price
An established retail price
A note verifying that a customer's account is being reduced by the amount of a sales return or sales allowance plus any sales tax that may have been involved
A business that manufactures or distributes goods to retail businesses or large consumers such as hotels and hospitals
A system that allows the sale of services or goods with the understanding that payment will be made at a later date
A business that sells directly to individual consumers
The stock of goods a merchandising business keeps on hand
Responses:
Merchandising business
Charge-account sales
Control account
Accounts receivable ledger
Sales return
Schedule of accounts receivable
Special journal
Net sales
List price
Subsidiary ledger
Merchandise inventory
Credit memorandum
Trade discount
Contra revenue account
Sales journal
Service business
Sales allowance
Open-account credit
Retail business
Net price
Wholesale business
Manufacturing business
Invoice

Correct Answer:

A firm's acceptance of a return of goods from a customer
An account that links a subsidiary ledger and the general ledger since its balance summarizes the balances of the accounts in the subsidiary ledger
The list price less all trade discounts
Sales made through the use of open-account credit or one of various types of credit cards
A business that sells goods that it has produced
A listing of all balances of the accounts in the accounts receivable subsidiary ledger
A journal used to record only one type of transaction
A subsidiary ledger that contains credit customer accounts
The difference between the balance in the Sales account and the balance in the Sales Returns and Allowances account
A business that sells services
A ledger dedicated to accounts of a single type and showing details to support a general ledger account
A special journal used to record sales of merchandise on credit
An account with a debit balance, which is contrary to the normal balance for a revenue account
A customer billing for merchandise bought on credit
A business that sells goods purchased for resale
A reduction in the price originally charged to customers for goods or services
A reduction from list price
An established retail price
A note verifying that a customer's account is being reduced by the amount of a sales return or sales allowance plus any sales tax that may have been involved
A business that manufactures or distributes goods to retail businesses or large consumers such as hotels and hospitals
A system that allows the sale of services or goods with the understanding that payment will be made at a later date
A business that sells directly to individual consumers
The stock of goods a merchandising business keeps on hand
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