Some business transactions purchase goods and services from the seller, on credit. The buyer of these goods and services, in good faith, intends to pay for the merchandise acquired or services rendered, on time. However, the seller knowing this is not always possible, will provide an incentive to the buyer. After reading “Purchase of Merchandise on Account”, page 146 to 148, illustrate and explain the ‘incentive’ a buyer receives to pay his bill.

1-      What is the difference between online sales and cash sales? 2-      If you are a business owner, what do you briefer cash sales or online sales?

The "dual nature of merchandise transactions" as described in this chapter means every business transaction affects both a/an __________ and a/an ____________. Group of answer choices income statement; balance sheet debit entry and a credit entry buyer; seller asset; expense

Effective credit management involves establishing credit standards for extending credit to customers, determining the company’s terms of credit, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The conditions of the credit sale, including cash discounts and due dates, are indicated by the company’s   (______)  .   Consider the case of Newtown Co.: Newtown Co.’s CFO has decided to take a closer look at the company’s credit policy. Newtown Co. has annual sales of $402.8 million, and it currently has an accounts receivable balance of $47.6 million. The first step in analyzing the firm’s credit policy is to determine its days sales outstanding (DSO).   Based on this information, Newtown Co.’s DSO is  (_____)  . (Note: Use 365 days as the length of a year in all calculations. Do not round intermediate calculations. Round your answer to one…

When a customer uses a credit card such as MasterCard or VISA to buy merchandise in a store, the store owner records the sale as a/an ______________________. Group of answer choices cash sale. debit to sales and a credit to cash. credit to accounts receivable. a credit sale and debits the customer's accounts receivable account.

When a seller receives payment from a customer who takes the discount for paying early, the journal entry will include a  debit to sales discount  credit to sales debit to sales