Key Terms
The key terms used in the unit are listed below:
Special Journals: Merchandising businesses use special journals for transactions such as sales and cash receipts to overcome the disadvantages (including potential added expenses and inefficiency) of general journals.
Journalizing: The process of recording a business transaction in a journal is called journalizing.
Sales Journal: The sales journal is used to record sales of merchandise on account.
Accounts Receivable Ledger: The accounts receivable ledger shows the total amount receivable from the charged customer of a business.
Accounts Receivable Subsidiary Ledger: The accounts receivable subsidiary ledger shows the balance due from an individual customer of the business.