20 terms accounts payable ledger A subsidiary ledger that lists the individual accounts of creditors.

Also called the creditor's ledger. cash discounts Discounts offered by a seller to encourage early payments by a buyer. To the seller, cash discounts are salesdiscounts; to the buyer, cash discounts are purchase discounts. cash payments journal A special journal used for recording all disbursements of cash. Also called the cash disbursement journal controlling account An account the the general ledger that summarized accounts in a related subsidiary ledger. cost accounts Accounts that are presented on the income statements; used to determine the cost of goods sold to customers. credit memorandum A written statement that indicates a seller's willingness to reduce the amount owed by a buyer. debit memorandum The buyer's written re FOB destination A shipping term that means that the seller is responsible foe all freight costs until the goods reach theirdestination. FOB shipping point uest to a seller for credit for a merchandise return or allowance.

A shipping term that means tha the buyer is responsible for all freight costs while the goods are in transit. Freight In account A general ledger account in which charges for freight on incoming merchandise are recorded. Also callTransportaion !n. general ledger A ledger containing the financial statement accounts invoice A business document that contains the names and addresses of the buyer and the seller, the date and terms of thesale, a description of the goods, the price of the goods, and the mode of transportation used to ship the goods.The seller calls the invoice a sales invoice; the buyer calls it a purchase invoice list price The price appearing in a price catalog issued by the seller.