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state the term- purchases returns and allowancespurchases returns and allowances is the name of the account which provides better control of
what is merchandise returns a return is when a customer returns to the seller part or all items purchased an allowance occurs when seller grants a
accounts payable subsidiary ledgeraccounts are designed to show balance owed to every creditor liability accounts generally have credit balances
what is uses of purchases journal purchases journal special journal used to record only credit purchases of merchandise-may be only one column which
explain in brief about the purchases account keeps a record of cost of merchandise purchased for resale during an accounting periodassets are
explain about the recording purchasessource document for recording a purchase of merchandise is purchase invoiceo an instance of a transaction of
how to figure the discount using calculator1 be sure that decimal selector is on 2 decimal places2 key in amount of the sale3 multiply by
enumerate the term- cash discountsoffered to encourage prompt and early payment by buyer cash discounts are recorded in accounting records of both
state about the trade discountspercentage reduction from list price of the merchandise these arent recorded in the accounting records of the seller
determine the purchasing proceduresalarge company would use a purchasing agent who heads purchasing department small companies would use managerowner
describe in brief about the wholesalersthey buy goods in bulk from manufacturers and sell them to retailers other schools wholesalers and other
importance of the bank statementbank sends out bank statements each month its significant that this statement and checking account balance balances
explain the term- cash short and overthis account is used to record both a shortage and overage of cash in cash drawer when change is made during a
establishing the change fund change fund asset is debited and cash is credited only time this fund would be used is if the fund is established or
what is the change fundbusiness that have many cash transactions generally establish this fund which is an amount of money which is placed in the
replenishing the petty cash funddebit every expense account supplies or drawing as needed credit to cash petty cash is only debited when fund is
explain about the petty cashpetty cash it is a small amount of money which is kept in the office for making small expenditures 10 25 50 etc business
what is internal control - control of cashinternal control refers to procedures and methods a business uses to protect its assetschecks are written
what is post closing trial balancethis statement would only show permanent accounts with a balance all temporary accounts must have a zero balance
posting closing entrieswhen closing entries are entered in the general journal they must appear on the next line after adjusting entries the words
what are the steps for closing entriesthere is a certain order that should be used to close accounts reid1 balance of the total revenue to income
income summary accountthis is a temporary account which used to summarize the balances of temporary revenue and expense accounts this is also known
adjusting entries in the general journalbe sure to put down the words adjusting entries at the beginning of journal after the last entry of month by
difference between income statement and balance sheetdifference between the amounts of the columns in income statement and balance sheet should be
state about the balance sheet columns of worksheet balance sheet columns of worksheet would comprise the amounts from adjusted trial balance columns