Match the terms with the descriptions related to merchandise sales and purchases.
-Purchased merchandise on credit.

Question

Quizplus · Accepted Answer

Transportation-in refers to the cost of shipping or transporting merchandise from the supplier to the buyer. Purchasing merchandise on credit does not impact the other terms listed.

Note: The other terms listed are:
B) Perpetual inventory system - a method of keeping track of inventory levels in real-time
C) Net purchases - the total amount of inventory purchased, minus any returns or discounts
D) FOB destination - a shipping term indicating that the seller is responsible for the cost of transportation until the merchandise reaches its destination
E) Cost of goods available for sale - the total cost of all inventory that was available for sale during a given period
F) Periodic inventory system - a method of keeping track of inventory levels by physically counting inventory at the end of each period
G) FOB shipping point - a shipping term indicating that the buyer is responsible for the cost of transportation once the merchandise leaves the seller's location
H) Delivery expense - the cost of shipping or transporting merchandise to the buyer

Match the Terms with the Descriptions Related to Merchandise Sales