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Chapter 10
| Term | Definition |
|---|---|
| Selling price | The amount a business receives from the sale of an item |
| Markup | The amount a business adds to the cost of merchandise to establish the selling price |
| FYI – Realization of Revenue | A merchandising business gets its revenue from the sale of merchandise |
| FYI – formula for Selling price | Cot of merchandise + Markup = Selling price |
| FYI – 2 ways to sale merchandise | 1)on account 2)for cash |
| Account Receivable Ledger | a subsidiary ledger containing all accounts for charge customers. |
| Sales tax | A tax on a sale of merchandise or a service |
| FYI – 2 tax needs for accuracy | 1)total sales 2)total sales tax collected |
| FYI – tax collected classification | a business liability, SALES TAX PAYABLE |
| Sales Journal | a special journal used to record only sales of merchandise on account |
| Invoice | When merchandise is sold on account, a form that describes the goods or services sold |
| FYI – 2 other names for Sales Invoice | Sales ticket or sales slip |
| FYI – 2 entities exempt from sales tax | necessities and nonprofit organizations |
| Cash Sale | A sale in which the customer pays for the total amount of the sale at the time of the transaction |
| FYI – 3 forms of cash sale | Cash, Credit cards, and debit cards |
| Point-of-Sale (POS) terminal | A specialized computer used to collect, store, and report all the information about a sales transaction |
| FYI – usage for UPC symbol | scanned to enter description and price of of the merchandise |
| Terminal Summary (Z tape) | The report that summarizes the cash and credit card sales of a POS terminal |
| Batch report | A report of credit card sales produced by a POS terminal |
| Batching out | The process of preparing a batch report from a POS terminal |
| FYI – POS terminals support | transmits a a summary batch report for processing credit card sales |
| Cash Receipts Journal | a special journal used to record only cash receipt transactions |
| Sales Discount | A cash discount on a sale taken by the customer |
| FYI – 2/10, n/30 | 2% discount given if paid in 10 days, but if not, all due in 30 days |
| FYI – 6 steps to proving Cash | 1)cash on hand at beginning of month 2)plus total cash received 3)Equal total 4)less total cash paid 5)equals cash balance on hand 6)checkbook balance on next unused check stub |
| Schedule of Accounts Receivable | A listing of customer accounts, account balances, and the total amount due from all customers |
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andrew.v
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