Purchases and Accounting Terms
Terms
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- Purchases is classified as what kind of account?
- Cost of Merchandise
- Prepaid Insurance is what kind of account?
- Asset
- Purchases Returns and Allowances is what kind of account?
- Contra Cost of Merchandise
- What account do you use when you buy merchandise?
- Purchases
- A written request that a certain item or items be purchased.
- Purchase Requisition
- A form that lists the items included in the shipment.
- Packing slip
- A stamp that is placed on an invoice to enter the date it is to be paid, the discount amount, and the amount to be paid.
- Processing Stamp
- Suppliers offer charge customers a cash discount for early payment.
- Purchases Discount
- The time within which an invoice must be paid if the discount is taken.
- Discount period
- A folder for each day of the month in which invoices are placed according to their due date.
- Tickler file
- Used to notify suppliers (creditors) of a return or to request an allowance.
- Debit Memo
- The cost of insurance protection.
- Premium
- This is usually a percentage of the total of the amounts recorded on the bankcard sales slips processed.
- Bankcard Fee Expense
- The supplier pays the shipping cost to the buyer's destination or location.
- FOB destination
- The buyer pays the shipping charge from the supplier's shipping point.
- FOB Shipping point