Match the terms with the descriptions related to merchandise sales and purchases.
-The seller is responsible for the cost of delivering the merchandise to the buyer.
A)Transportation-in
B)Perpetual inventory system
C)Net purchasesd.
D)FOB Destination
E)Cost of goods available for sale
F)Periodic inventory system
G)FOB Shipping point
H)Delivery expense

Question

Quizplus · Accepted Answer

FOB Destination means the seller is responsible for delivering the merchandise to the buyer, so they would be responsible for the cost of delivery.

Answer: B 
 A perpetual inventory system is an inventory management system where inventory levels are constantly updated in real-time, which allows for accurate tracking of all purchases and sales made.

Answer: C 
 Net purchases are the total amount of purchases made during a period after deducting any purchase returns, allowances, and discounts.

Answer: G 
 FOB Shipping point means the buyer is responsible for the cost of transporting the merchandise from the seller's location to the buyer's location.

Answer: E 
 Cost of goods available for sale is the total cost of all inventory items that are available for sale during a particular period, including beginning inventory and any purchases made during the period.

Answer: F 
 A periodic inventory system is an inventory management system where inventory levels are updated periodically, usually at the end of an accounting period, which means that it is not updated in real-time.

Answer: A and H 
 Transportation-in and delivery expense both refer to the cost of transporting merchandise from the seller's location to the buyer's location, but Transportation-in typically refers to the cost of transporting goods from a supplier's location to a retailer's location, while delivery expense typically refers to the cost of transporting goods from a retailer's location to a customer's location.

Match the Terms with the Descriptions Related to Merchandise Sales