1.Enter the letter for each term in the blank space beside the definition that it most closely matches.A. Sales discountB. Credit periodC. Discount periodD. FOB destinationE. FOB shipping pointF. Gross profitG. Merchandise inventoryH. Purchase discountI. Cash discountJ. Trade discount1. Goods a company owns and expects to sell to its customers.2. Time period that can pass before a customer's payment is due.3. Seller's description of a cash discount granted to buyers in return for early payment.4. Reduction below list or catalog price that is negotiated in setting the price of goods.5. Ownership of goods is transferred when the seller delivers goods to the carrier.6. Purchaser's description of a cash discount received from a supplier of goods.7. Reduction in a receivable or payable if it is paid within the discount period.8. Difference between net sales and the cost of goods sold.9. Time period in which a cash discount is available.10. Ownership of goods is transferred when delivered to the buyer's place of business.

Sales discount : The discount given by the seller of goods and services to the buyer for promoting…

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. Purchase discount I. Cash discount J. Trade discount

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. Purchase discount I. Cash discount J. Trade discount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What accounts are used to recognize a retailer’s purchase from a manufacturer on credit?A. accounts receivable, merchandise inventoryB. accounts payable, merchandise inventoryC. accounts payable, cashD. sales, accounts receivable
If the balance in the inventory account is greater than the physical count, which of the following journal entries is recorded? a.Debit Merchandise Inventory and credit Inventory Short and Over b.Debit Merchandise Inventory and credit Cost of Goods Sold c.Debit Cost of Goods Sold and credit Merchandise Inventory d.Debit Inventory Short and Over and credit Merchandise Inventory
Terminology Match each phrase with its definition. 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. 2. 3. 4. 5. 6. 7. 8. Goods a company owns and expects to see to its customers. Time period that can pass before a customer's full payment is due. Seller's description of a cash discount granted to buyers in return for early payment. Ownership of goods is transferred when the seller delivers goods to the carrier. Purchaser's description of a cash discount received from a supplier of goods. Difference between net sales and the cost of goods sold. Time period in which a cash discount is available. Ownership of goods is transferred when delivered to the buyer's place of business. 1
When the transportation charges are paid by the seller, merchandise is shipped a. FOB destination b. FOB shipping c. FOB carrier d. Prepaid
The amount recorded for net cost of purchases includes all of the following EXCEPT: Purchase discounts. Freight costs paid by the seller. Returns and allowances. Freight costs paid by the buyer.
When merchandise is bought for resale, which of the following accounts would be increased? A. Accounts Payable B. Supplies Expense C. Store Equipment D. Merchandise Inventory