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 buyer. 5. A current asset that includes the cost to buy goods and make them ready for sale. 6. Refers to credit terms where goods in transit are owned by the seller. 7. Calculated as net sales minus cost of goods sold. 8. Purchaser's description of a cash discount received from a supplier of goods.

Accounting for Merchandising Businesses and Inventory and Assets Define the following: Cost of goods sold Credit memo Credit terms Debit memo FIFO FOB Gross profit Invoice LIFO Net sales Periodic inventory Perpetual inventory Sales Selling expense Subsidiary ledger Trade discount Weighted average

When inventory is purchased on credit with terms FOB shipping point, what does the buyer do?     Responses The buyer receives a discount if payment is made before the goods leave the seller’s place of business. The seller bears the insurance expense of goods during transit. The buyer reports the liability when the goods reach the buyer’s place of business. The buyer reports the liability when the goods leave the seller’s place of business.

What is the name of the account used to record sales of merchandise inventory? Multiple Choice Sales Returns and Allowances Sales Fees Income Accounts Receivable