Exercise 5-1 Insert the letter for each term in the blank space beside the definition that it most closely matches: A. Cash discount E. FOB shipping point H. Purchases discount B. Credit period F. Gross profit 1. Sales discount C. Discount period G. Inventory J. Trade discount D. FOB destination _ 1. An agreement that ownership of goods is transferred at the buyer's place of business 2. The time period in which a cash discount is available. 3. The difference between net sales and the cost of goods sold. 4. A reduction in a receivable or payable that is granted if it is paid within the discount period. 5. A cash discount taken against an amount owed to a supplier of goods. 6. An agreement that ownership of goods is transferred at the seller's place of business. 7. A reduction below a list or catalogue price that is negotiated in setting the selling price of goods. ___8. A cash discount taken by customers against an amount owed to the seller. 9. The time period that can pass before a customer's payment is due. - 10. The goods that a company owns and expects to sell to its customers