Solved

Match the Appropriate Definition with the Following Items Below

Question 275

Matching

Match the appropriate definition with the following items below.

Premises:

Responses:

Discount taken by the buyer for early payment of invoice.

Freight

Account used to record inventory on hand under a perpetual inventory system.

Delivery Expense

Early payment discount offered to customers by the seller.

Inventory

Expense account for recording shipping costs paid by the seller.

Sales discount

Discount to government agencies or customers who purchase large quantities of merchandise.

Purchases Returns and Allowances

Account where returned merchandise or price adjustments are recorded by the buyer under the periodic inventory system.

Debit memo

The cost associated with delivery of merchandise to the customer.

Purchases discount

Informs the seller of the reasons for the return of merchandise or the request for a price allowance.

Trade discount

Premises:

Discount taken by the buyer for early payment of invoice.

Account used to record inventory on hand under a perpetual inventory system.

Early payment discount offered to customers by the seller.

Expense account for recording shipping costs paid by the seller.

Discount to government agencies or customers who purchase large quantities of merchandise.

Account where returned merchandise or price adjustments are recorded by the buyer under the periodic inventory system.

The cost associated with delivery of merchandise to the customer.

Informs the seller of the reasons for the return of merchandise or the request for a price allowance.

Responses:

Freight

Delivery Expense

Inventory

Sales discount

Purchases Returns and Allowances

Debit memo

Purchases discount

Trade discount

Correct Answer:

Premises:

Responses:

Discount taken by the buyer for early payment of invoice.

Account used to record inventory on hand under a perpetual inventory system.

Early payment discount offered to customers by the seller.

Expense account for recording shipping costs paid by the seller.

Discount to government agencies or customers who purchase large quantities of merchandise.

Account where returned merchandise or price adjustments are recorded by the buyer under the periodic inventory system.

The cost associated with delivery of merchandise to the customer.

Informs the seller of the reasons for the return of merchandise or the request for a price allowance.

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