Concept explainers
Applying merchandising terms C1 P1
Enter the letter for each term in the blank space beside the definition that it most closely matches.
A. Sales discount
B. Credit period
C. Discount period
D. FOB destination
E. FOB shipping point
F. Gross profit
G. Merchandise inventory
H. Purchases discount
_1. Goods a company owns and expects to sell to its customers.
_2. Time period that can pass before a customer's full payment is due.
_3. Seller's description of a cash discount granted to buyers in return for early payment.
_4. Ownership of goods is transferred when the seller delivers goods to the carrier.
_5. Purchaser's description of a cash discount received from a supplier of goods.
_6. Difference between net sales and the cost of goods sold.
_7. Time period in which a cash discount is available.
_8. Ownership of goods is transferred when delivered to the buyer's place of business.
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Chapter 5 Solutions
FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS
- Enter the letter for each term in the blank space beside the definition that it most closely matches. A. Sales discount D. FOB destination G. Merchandise inventory B. Credit period E. FOB shipping point H. Purchases discount C. Discount period F. Gross profit 1. Goods a company owns and expects to sell to its customers. 2. Time period that can pass before a customer’s full payment is due. 3. Seller’s description of a cash discount granted to buyers in return for early payment. 4. Ownership of goods is transferred when the seller delivers goods to the carrier. 5. Purchaser’s description of a cash discount received from a supplier of goods. 6. Difference between net sales and the cost of goods sold. 7. Time period in which a cash discount is available. 8. Ownership of goods is transferred when delivered to the buyer’s place of business.arrow_forwarddocs.google.com/forms choose the right answer Net profit is calculated in which of the following account? Trading account O Trial balance Profit and loss account C Balance sheet choose the right answer Goods returned by customer will be debited to which account? Return outward Purchases A/C O Return inward Customer's A/c Oarrow_forward9 Sellers often offer some discounts to customers to adjust the sales prices of items listed in the catalogue. Such kind of discount is known as _________________. a. Net realizable value (NRV) b. Sales allowance c. Trade discount d. Sales discountarrow_forward
- On a journal entry with a debit to Cost of Goods Sold you would expect a credit to _____________________ Question 7 options: Accounts Receivable Accounts Payable Cash Merchandise Inventory Sales Revenuearrow_forwardThe return of goods by a customer ( Sales Return ) should be credited in the ledger account of ? Select one: a. Sales account O b. Accounts receivable account O c. Purchase Return account O d. Sales Return accountarrow_forwardQuestion Content Area Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $19,700. What is the amount of sales discount allowable? a. $189 b. $142 c. $201 d. $394arrow_forward
- QUESTION 6 When a buyer returns merchandise purchased on account, the buyer will record the transaction as a a. debit to Merchandise Inventory; a credit to Cash b. debit to Sales; a credit to Accounts Payable c. debit to Accounts Payable; a credit to Merchandise Inventory d. debit to Cash; a credit to Salesarrow_forwardWhat accounts are used to recognize a retailers purchase from a manufacturer on credit? A. accounts receivable, merchandise inventory B. accounts payable, merchandise inventory C. accounts payable, cash D. sales, accounts receivablearrow_forwardFor a manufacturer, what is the description of the account that is comparable to a merchandising businesss cost of merchandise sold?arrow_forward
- For a manufacturer, what is the description of the account that is comparable to a merchandising businesss cost of merchandise sold?arrow_forwardWhich of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods soldarrow_forwardMatch each phrase with its definition. 1. Seller's description of a cash discount granted to buyers in return for early payment. 2. The amount of time allowed by a seller before payment is due from the buyer. 3. Time period in which a cash discount is available. 4. Refers to credit terms where goods in transit are owned by the seller. 5. Refers to credit terms where goods in transit are owned by the buyer. 6. Calculated as net sales minus cost of goods sold. 7. A current asset that includes the cost to buy goods and make them ready for sale. 8. Purchaser's description of a cash discount received from a supplier of goods.arrow_forward
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