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.