Matching
Match the items below by entering the appropriate code letter in the space provided. (Some answers may be used more than once.)
Premises:
Freight terms which required the buyer to pay the freight cost
Freight terms which require the seller to pay the freight cost
Freight cost to deliver goods to customers reported as an operating expense
Deducted from net sales to calculate gross profit
A calculation of gross profit divided by net sales
Debits to Merchandise Inventory
A discount provided to encourage early payment
Separate account maintained for each different product
Requires a physical count of goods on hand to calculate cost of goods sold
The merchandise inventory account balance should equal ending inventory, at all times
Sales less sales returns and allowances and sales discounts
Responses:
Freight out
Cost of goods purchased
Perpetual inventory system
Periodic inventory system
Net sales
Purchase discount
FOB shipping point
Gross Profit Margin
FOB destination
Cost of goods sold
Subsidiary account
Correct Answer:
Premises:
Responses:
Freight terms which required the buyer to pay the freight cost
Freight terms which require the seller to pay the freight cost
Freight cost to deliver goods to customers reported as an operating expense
Deducted from net sales to calculate gross profit
A calculation of gross profit divided by net sales
Debits to Merchandise Inventory
A discount provided to encourage early payment
Separate account maintained for each different product
Requires a physical count of goods on hand to calculate cost of goods sold
The merchandise inventory account balance should equal ending inventory, at all times
Sales less sales returns and allowances and sales discounts
Premises:
Freight terms which required the buyer to pay the freight cost
Freight terms which require the seller to pay the freight cost
Freight cost to deliver goods to customers reported as an operating expense
Deducted from net sales to calculate gross profit
A calculation of gross profit divided by net sales
Debits to Merchandise Inventory
A discount provided to encourage early payment
Separate account maintained for each different product
Requires a physical count of goods on hand to calculate cost of goods sold
The merchandise inventory account balance should equal ending inventory, at all times
Sales less sales returns and allowances and sales discounts
Responses:
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