Merchandising Flashcards
Commodities or goods acquired by the business intended for sal but remain unsold.
Merchandise Inventory
Amount of commodities or goods acquired by business intended for sale at a profit.
Purchases
Amount incurred for merchandise bought which was shouldered by the buyer.
Freight-In
A contra-purchase account that reduces the cost of merchandise returned to suppliers for various reasons.
Purchase Returns and Allowances
A reduction in the purchase price due to payment of the buyer to the seller before the day the discount period is over.
Purchase Discount
Business which engages in buy and sell of goods and merchandise.
Merchandising Business
Revenue derived in the sale of goods.
Sales
A contra-sales account that reduces the amount of merchandise sold to customers but returned for various reasons.
Sales Returns and Allowances
A reduction in the selling price due to payment of the buyer to the seller before the day the discount period is over.
Sales Discount
Amount incurred for transporting merchandise to customers.
Freight-out
Arrangements agreed upon between the purchaser and seller with respect to the method of payments for commodities sold.
Credit Terms
What are the two types of discounts?
Cash Discount and Trade Discount
Discount intended to encourage prompt payment of accounts.
Cash Discount
Discount intended to encourage purchases in volume.
Trade Discounts
Revenue derived in the sale of goods.
Sales
