Wednesday, November 14, 2007

Chapter 11

Vocabulary terms:

  • Customer- a person or business to whom merchandise or service s are sold.

  • Sales tax- a tax on a sale of merchandise or service.

  • Cash sale- a sale in which cash is received fro the total amount of the sale at the time of the transaction.

  • Credit card sale- a sale in which a credit card is used for the total amount of the sale at the time of the transaction.

Quick Info. About the Chapter

  • A percentage of sales is how sales tax are started.

  • Whenever a journal page is filled and always at the end of a month is when the journal should be proved.

  • The amount of sales tax collected is a liability until it is paid to the government.

  • Realization of Revenue, is the accounting concept that is applied when the revenue is recorded at the time of a sale is made, ignoring when the payment was made.
  • The main purpose of of proving a journal is to show the equality of debits and credits.
  • The differences in a merchandise business and a service business, that is simply that in a merchandise business they sell merchandise and in a service business they sell services.
  • Accounts Receivables is the title of the general account used to summarize the total amount due from all charged customers.

1 comment:

DIVA said...

Your chapter summary is very good. We should have a very good discussion on the chapter with the detailed notes you have written.