Enter the letter for each term in the blank space beside the definition that it most closely matches.
A. Cash discount
B. Credit period
C. Discount period
D. FOB destination
E. FOB shipping point
F. Gross profit
G. Merchandise inventory
H. Purchase discount
I. Sales discount
J. Trade discount
______ 1. Ownership of goods is transferred when delivered to the buyer’s place of business.
______ 2. Time period in which a cash discount is available.
______ 3. Difference between net sales and the cost of goods sold.
______ 4. Reduction in a receivable or payable if it is paid within the discount period.
______ 5. Purchaser’s description of a cash discount received from a supplier of goods.
______ 6. Ownership of goods is transferred when the seller delivers goods to the carrier.
______ 7. Reduction below list or catalog price that is negotiated in setting the price of goods.
______ 8. Seller’s description of a cash discount granted to buyers in return for early payment.
______ 9. Time period that can pass before a customer’s payment is due.
______ 10. Goods a company owns and expects to sell to its customers.