Question

Choose the best definition for each item. A cash (also called sales) discount Answer 1 Choose......

Choose the best definition for each item.

A cash (also called sales) discount

Answer 1
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - Sales Discounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

The gross profit percentage

Answer 2
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - Sales Discounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

A perpetual inventory system

Answer 3
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - Sales Discounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

Net sales

Answer 4
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - Sales Discounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

When a sale of merchandise is made

Answer 5
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - Sales Discounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

The operating cycle of a merchadiser

Answer 6
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - Sales Discounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

Goods purchased FOB shipping point

Answer 7
Choose...
can reduce the price of items purchased
is updated with each transaction
requires the buyer to pay shipping costs
is complete when cash is received for goods sold.
is equal to Sales Revenue - Sales Returns and Allowances - Sales Discounts
Cost of goods sold is debited and inventory is credited
helps a seller analyze its pricing

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Homework Answers

Answer #1

Answer 1 –

A Cash discount can reduce the price of items purchased.

Answer 2-

The gross profit percentage helps a seller analyze its pricing

Answer 3 -

A perpetual inventory system is updated with each transaction

Answer 4-

Net sales is equal to Sales Revenue - Sales Returns and Allowances - Sales Discounts

Answer 5-

When a sale of merchandise is made Cost of goods sold is debited and inventory is credited

Answer -6

The operating cycle of a merchandiser, is complete when cash is received for goods sold.

Answer 7-

Goods purchased FOB shipping point requires the buyer to pay shipping costs.

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