llar unless stated otherwise.E5-18 Using accounting vocabularyMatch the accounting terms with the corresponding definitions.Learn1. Credit Termsa. The cost of the merchandise inventory that the business hassold to customers.2. FOB Destinationb. An amount granted to the purchaser as an incentive to keepgoods that are not "as ordered."c. A type of merchandiser that buys merchandise either from amanufacturer or a wholesaler and then sells those goods to3. Invoice4. Cost of Goods Sold5. Purchase Allowanceconsumers.d. A situation in which the buyer takes ownership (title) at thedelivery destination point.e. A type of merchandiser that buys goods from manufacturersand then sells them to retailers.6. FOB Shipping Point7. Wholesaler8. Purchase Discountf. A discount that businesses offer to purchasers as anincentive for early payment.9. Retailerg. A situation in which the buyer takes title to the goods afterthe goods leave the seller's place of business.h. The terms of purchase or sale as stated on the invoice.i, A seller's request for cash from the purchaser.

Answered: 1. Credit Terms a. The cost of the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 3EB: For each of the following statements, fill in the blanks with the correct account names. A. A...

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llar unless stated otherwise.
E5-18 Using accounting vocabulary
Match the accounting terms with the corresponding definitions.
Learn
1. Credit Terms
a. The cost of the merchandise inventory that the business has
sold to customers.
2. FOB Destination
b. An amount granted to the purchaser as an incentive to keep
goods that are not "as ordered."
c. A type of merchandiser that buys merchandise either from a
manufacturer or a wholesaler and then sells those goods to
3. Invoice
4. Cost of Goods Sold
5. Purchase Allowance
consumers.
d. A situation in which the buyer takes ownership (title) at the
delivery destination point.
e. A type of merchandiser that buys goods from manufacturers
and then sells them to retailers.
6. FOB Shipping Point
7. Wholesaler
8. Purchase Discount
f. A discount that businesses offer to purchasers as an
incentive for early payment.
9. Retailer
g. A situation in which the buyer takes title to the goods after
the goods leave the seller's place of business.
h. The terms of purchase or sale as stated on the invoice.
i, A seller's request for cash from the purchaser.

Expert Solution

Step 1

FOB destination point vs FOB shipping point :

In FOB destination point, the seller transfers the title or ownership of the goods when the goods reaches the destination of the buyer's place and seller is responsible and liable for damages until that point.

In FOB shipping point, the buyer received the title or ownership of goods when the goods leaves or shipped from the place of the seller and buyer is liable for damages to the goods in the shipping process.

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