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Sales & Purchases Subsidiary Ledger

Author: Evan McLaughlin

Source: Instrumental “Drops of H2O ( The Filtered Water Treatment )" by J.Lang (feat. Airtone),” Creative Commons, http://ccmixter.org/files/djlang59/37792

Video Transcript
Terms to Know
Purchase

The buying of inventory for resale to customers, or assets such as supplies or equipment, for cash or credit.

Sale

The selling of inventory by a merchandising business.

Subsidiary Ledgers

Groups of accounts with similar characteristics, such as sales or purchases, that track the transaction detail and account balances of each individual customer or vendor.