Matching

Perpetual method,.each purchase and sales of merchandise is recorded in the inventory account and related subsidiary ledger the update of the inventory records
Credit memorandum, seller may credit the customer’s accounts receivable rather than pay cash. is a commercial document issued by a seller to a buyer
FOB destination, the seller pays the frights cost from the shipping point to the buyers final destination
Gross profit, the difference between the revenue and the cost of the product or services
Current liabilities, liabilities due within one year and paid out of current assets
Natural business year, A fiscal year that ends when business activities have reached their lowest point in its annual operating cycle is called a natural business year. is the period of twelve consecutive months ending at a low point of an organization's activities
Matching concept, revenue and expenses net income or loss for the period is properly reported on the income statement. expenses are recorded in the same period in which they helped generate revenue.
Book value, cost of the assets – accumulated depreciation of assets. the value of an asset as entered in a company's books.
Periodic method, the inventory does not show the amount of merchandise available for sale and the amount sold. updates the ending inventory when the physical count of inventory is preformed
Invoice, the bill the seller sends to buyer
Debit memorandum, inform the seller of the amount the buyer proposes to debits to the account payable due and stated the reason. a document given to an account holder informing them that the account balance has been decreased
FOB shipping point, terms indicating that the buyer must pay to get the goods delivered.
Trade discount, is the amount the manufacture cut to the retailer
Accounting cycle, the process that begins with analyzing and journalizing