Match the terms below with the correct definitions.
-Special journal used for recording the purchase of merchandise on account only
A)FOB destination
B)Sales Returns and Allowances
C)Controlling account
D)Accounts receivable ledger
E)Subsidiary ledger
F)Purchases journal
G)Sales invoice
H)FOB shipping point
I)General journal

Question

Quizplus · Accepted Answer

The purchases journal is a special journal used for recording the purchase of merchandise on account only.

Answer: B
 Sales Returns and Allowances is a contra revenue account used to record returned merchandise and allowances given to customers.

Answer: C
 A controlling account is an account in the general ledger that summarizes the balances of a subsidiary ledger.

Answer: D
 The accounts receivable ledger is a subsidiary ledger that contains detailed information about customers' accounts and transactions.

Answer: E
 A subsidiary ledger is a ledger that contains detailed information about a specific group of accounts, such as accounts receivable.

Answer: G
 A sales invoice is a document that details the sale of goods or services to a customer.

Answer: A
 FOB destination is a shipping term that indicates the seller is responsible for the goods until they are delivered to the buyer's destination.

Answer: H
 FOB shipping point is a shipping term that indicates the buyer is responsible for the goods once they leave the seller's location.

Answer: I
 The general journal is a book of original entry where transactions that cannot be recorded in a special journal are recorded.

Match the Terms Below with the Correct Definitions