Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 38

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
_______ 1. 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.