Key Terms
The key terms in this section are:
Accounts Receivable Subsidiary Ledger: A ledger detailing each customer's purchases made on account.
Cash Discount: A discount given to customers for the fast recovery of debt.
Cash Receipt: Receipt given when cash is received from the customer.
Cash Sales: Sales made on a cash basis.
Charge Customer: A customer purchasing merchandise on account.
Controlling Account: A general account which encompasses all subsidiary ledgers.
Credit Terms: The period of time within which a customer is permitted to pay the purchase balance.
Sales Return: Goods returned from the customer.
Sales Slip: A source document for sales.
Sales Tax: A tax levied on sales and paid to the government.