Match the terms with the definitions.
-Discounts to encourage prompt payment by customers who buy merchandise on account.

Question

Quizplus · Accepted Answer

Cash discounts are discounts offered to customers who pay their accounts receivable balance within a certain time frame.

Answer: E 
 A merchandising business is a business that sells products or merchandise.

Answer: F 
 A sale is the exchange of goods or services for money.

Answer: G 
 Sales allowances are reductions in the selling price of merchandise sold to customers.

Answer: H 
 Sales discounts are discounts offered to customers who pay their accounts receivable balance within a certain time frame.

Answer: I 
 A sales invoice is a document that lists the details of a sale, including the items sold, the price of each item, and the total amount owed.

Answer: J 
 A sales return occurs when a customer returns merchandise previously purchased.

Answer: K 
 A sales ticket is a document used to record a sale, usually at a retail store.

Answer: L 
 A schedule of accounts receivable is a list of all the customers who owe money to the company and the amount they owe.

Answer: A 
 An accounts receivable ledger is a subsidiary ledger that contains detailed information about each customer's account balance.

Answer: C 
 A controlling account is a general ledger account used to summarize the activity in a subsidiary ledger.

Answer: D 
 A credit memo is a document used to record a reduction in the amount owed by a customer, usually due to a return or discount.

Match the Terms with the Definitions