key terms 1
amount a business receives from the sale of an item
selling price
sells to those who use or consume the goods
retail
cost of merchandise is $17.00. markup is $15.50. what is the selling price?
$32.50
periodic inventory conducted by counting, weighing or measuring items of merchandise on hand
physical inventory
The journal used for all purchases of merchandise on account.
purchases journal
amount a business adds to the cost of merchandise to establish the selling price
markup
A business that buys and sells merchandise primarily to other merchandising business is called a ________.
Wholesaler
Purchase Invoice Amount x Discount Rate= Cash Discount
Purchase Invoice Amount is $640.00
Discount Rate is 2.0%
What is the Cash Discount?
$12.80
merchandise inventory evaluated at the end of a fiscal period
periodic inventory
Deduction that a vendor allows on an invoice amount to encourage prompt payment is a _____ Discount.
Cash
a list of assets, usually containing the value of individual items
inventory
Goods that a business purchases to sell is called ___________.
merchandise
Purchase Invoice Amount– Cash Discount= Invoice Amount
Purchase Invoice Amount is $950.00
Cash Discount is $19.00
What is the Invoice Amount?
$931
inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise
perpetual inventory
Reduction in the list price granted to a merchandising business is a _______ Discount
Trade
a form requesting that a vendor sell merchandise to a business is called a Purchase ________.
Order
Merchandise
what does 2/10, n/30 stand for?
2% discount if paid within 10days.
Must pay full invoice amount in 30 days.
goods a business has on hand for sale to customers
merchandise inventory
a journal used to record only one kind of transaction are called __________ journals.
Special
source document for recording a purchase on account transaction is called a Purchase __________.
invoice
A transaction in which the items purchased are to be paid for later is called a Purchase ___ ________.
on account