Show:
key terms 1
key terms 2
calculation
name that inventory
journals & discounts
100

amount a business receives from the sale of an item

selling price

100

sells to those who use or consume the goods

retail

100

cost of merchandise is $17.00. markup is $15.50. what is the selling price?

$32.50

100

periodic inventory conducted by counting, weighing or measuring items of merchandise on hand

physical inventory

100

The journal used for all purchases of merchandise on account.

purchases journal

200

amount a business adds to the cost of merchandise to establish the selling price

markup

200

A business that buys and sells merchandise primarily to other merchandising business is called a ________.

Wholesaler

200

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

200

merchandise inventory evaluated at the end of a fiscal period

periodic inventory

200

Deduction that a vendor allows on an invoice amount to encourage prompt payment is a _____ Discount.

Cash

300

a list of assets, usually containing the value of individual items

inventory

300

Goods that a business purchases to sell is called ___________.

merchandise

300

Purchase Invoice Amount– Cash Discount= Invoice Amount

Purchase Invoice Amount is $950.00

Cash Discount is $19.00

What is the Invoice Amount?

$931

300

inventory determined by keeping a continuous record of increases, decreases, and the balance on hand of each item of merchandise

perpetual inventory

300

Reduction in the list price granted to a merchandising business is a _______ Discount

Trade

400

a form requesting that a vendor sell merchandise to a business is called a Purchase ________.

Order

400
A _________ Business purchases and resells goods.

Merchandise

400

what does 2/10, n/30 stand for?

2% discount if paid within 10days.

Must pay full invoice amount in 30 days.

400

goods a business has on hand for sale to customers

merchandise inventory

400

a journal used to record only one kind of transaction are called __________ journals.

Special

500

source document for recording a purchase on account transaction is called a Purchase __________.

invoice

500

A transaction in which the items purchased are to be paid for later is called a Purchase ___  ________.

on account