Purchasers
The new account introduced for purchasers to record the value of their stock
Merchandise inventory
The number of accounts affected when a merchandiser sells inventory.
4
3/10, n/15 is an example of
Payment (credit) Terms
This is an inventory system which is updated once or twice a year.
Periodic Inventory
Discount
B2B refers to this type of merchandiser
Wholesaler
The account we use to record the seller's cost of the goods they are selling
n30 means
Net 30 (Payment is due in 30 days)
This is an inventory system which is updated with every sale and return
Perpetual Inventory System
This is the number of accounts we use to record all purchasing entries.
3
B2C refers to this type of merchandiser
Retailer
True or False : We expect the price of the inventory sold to be greater than the cost.
True
This credit term always involves the cash account
This is the amount purchasers charge their customers
Price
An agreement to reduce the price of goods with the aim of encouraging the purchaser to keep them is a(n) ...
allowance
True or False : Shipping fees related to inventory purchases are recorded in a shipping expense account.
False - they are recorded in the Merchandise Inventory account.
COGS is this type of account
Expense
2/10 means
The purchaser can have a 2% discount if they pay in 10 days
This is the amount purchasers pay their suppliers
Cost
Sales Returns and Allowances is this type of account.
Contra-revenue
The three accounts used for purchases
Merchandise Inventory / Cash / Accounts Payable
The acronym to remember the order of the 4 accounts used for a sale of inventory on account
ASCI
EOM stands for
End of month
This is the term used when a purchaser is offered a price reduction to keep damaged inventory.
Purchase allowance
Sales returns and allowances increase on this side (debit or credit)
Debit