EA3. LO 6.1 Match each of the following terms with the best corresponding definition. A. Sales allowance i. A customer returns merchandise for a full refund B. Purchase return ii. A retailer receives a partial refund but keeps the defective merchandise C. Sales discount iii. A customer receives a partial refund but keeps the defective merchandise D. Purchase discount iv. A customer pays their account in full within the discount window E. Sales return v. A type of purchase discount negotiated between a manufacturer and a retailer before settlement on a final price F. Trade discount vi. A retailer returns merchandise for a full refund G. Purchase allowance vii. A retailer pays their account in full within the discount window

EA3. LO 6.1 Match each of the following terms with the best corresponding definition. A. Sales allowance i. A customer returns merchandise for a full refund B. Purchase return ii. A retailer receives a partial refund but keeps the defective merchandise C. Sales discount iii. A customer receives a partial refund but keeps the defective merchandise D. Purchase discount iv. A customer pays their account in full within the discount window E. Sales return v. A type of purchase discount negotiated between a manufacturer and a retailer before settlement on a final price F. Trade discount vi. A retailer returns merchandise for a full refund G. Purchase allowance vii. A retailer pays their account in full within the discount window

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 26MC: A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize...

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EA3. LO 6.1 Match each of the following terms with the best corresponding definition. A. Sales allowance B. Purchase return i. A customer returns merchandise for a full refund I1. A retailer receives a partial refund but keeps the defective merchandise III. A customer receives a partial refund but keeps the defective merchandise iv. A customer pays their account in full within the discount window v. A type of purchase discount negotiated between a manufacturer and a retailer before settlement on a final price vi. A retailer retums merchandıse for a full refund vii A retailer pays their account in full within the discount window C. Sales discount D. Purchase discount E. Sales return F. Trade discount G. Purchase allowance
9 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 discount
If a customer purchases merchandise on credit and returns the defective merchandise beforepayment, what accounts would recognize this transaction?A. sales discount, cashB. sales returns and allowances, cashC. accounts receivable, sales discountD. accounts receivable, sales returns and allowances
If any discount is offered for early payment of invoice will be called as a. Cash discount b. Trade discount c. No discount d. Any discount
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
Match 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.
Which of the following is an example of a contra revenue account?A. salesB. merchandise inventoryC. sales discountsD. accounts payable
What is the normal balance for each of the following accounts: (a) Purchases? (b) Sales Discounts? (c) Purchases Returns and Allowances? (d) Sales? (e) Purchases Discounts? (f) Sales Returns and Allowances?
Which of the following numbers represents the discount percentage applied if a customer pays within a discount window and credit terms are 3/15, n/60? A. 3 B. 15 C. 60 D. 3 and 15
A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold
Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory C. sales discounts D. accounts payable
If a customer purchases merchandise on credit and return the defective merchandise before payment, what accounts would recognize this transaction? Assume the perpetual inventory system is used. A.Sales Discount, Cash B.Accounts Receivable, Sales Discount C.Sales Returns and Allowances, Cash D.Accounts Receivable, Sales Returns and Allowances