Term
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Definition
| The account that wholesalers and retailers use to report inventory held for sale. |
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Term
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Definition
| The inventory of a manufacturer before the addition of any direct labor or manufacturing overhead. |
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Term
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Definition
| The cost of unfinished products in a manuacturing company. |
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Term
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Definition
| A manufacturer's inventory that is complete and ready for sale. |
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Term
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Definition
| Sales less cost of goods sold |
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Term
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Definition
| Sales revenue less sales returns and allowances and sales discounts. |
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Term
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Definition
| A representation of the inflow of assets from teh sale of a product. |
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Term
| Sales returns and Allowances |
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Definition
| The contra-revenue accountuse dto record refunds to customers and reductions of their accounts. |
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Term
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Definition
| The contra-revenue accounts used to record discounts given to customers for early payment of tehir accounts. |
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Term
| Cost of goods available for sale |
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Definition
| Beginning inventory pulus cost of goods sold. |
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Term
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Definition
| Cost of goods available for sale minus ending inventory. |
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Term
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Definition
| The system in which the Inventory account is increased at the time of each purchase of merchandise and decreased at the time of each sale. |
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Term
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Definition
| The system in which the Inventory account is updated only at the end of the period. |
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Term
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Definition
| The adjunct account used to record freight costs paid by the buyer. |
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Term
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Definition
| The account used in a periodic inventory system to record acquisitions of merchandise. |
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Term
| Purchase Returns and Allowances |
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Definition
| The contra-purchases account used in a periodic inventory system when a refund is received rom a supplier or a reduction is given in the balance owed to the supplier. |
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Term
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Definition
| The contra-purchases account used to record reductions in purchaseprice for early payment to the supplier. |
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Term
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Definition
| Term that require the seller to pay for the costof chipping the merchandise to the buyer. |
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Term
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Definition
| Terms that require the buyer to pay the shipping costs. |
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Term
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Definition
| Gross profit divided by the net sales. |
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