Term
| Cost of goods available for sale |
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Definition
| The sum of beginning inventory and the net cost of purchases during an accounting period. |
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Term
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Definition
| The transportation cost of delivering merchandise. Also called freight-out. |
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Term
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Definition
| A gain or loss due to exchange rate fluctuation, which is reported on the income statement. |
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Term
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Definition
| The amount of time from the purchase of inventory until it is sold and payment is collected, less the amount of time creditors give the company to pay for the inventory. |
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Term
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Definition
| A term indicating that the seller retains title to the merchadise until it reaches its destination and that the seller bears the shipping costs. |
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Term
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Definition
| A term indicating that the buyer assumes title to the merchandise at the shipping point and bears the shipping costs. |
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Term
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Definition
| The transportation cost of receiving merchandise. |
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Term
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Definition
| The goods on hand at any one time that are available for sale to customers. |
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Term
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Definition
| A business that earns income by buyng and selling goods. |
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Term
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Definition
| Net purchases plus any freight charges on the purchases. |
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Term
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Definition
| Total purchses less any deductions, such as purchases returns and allowances and discounts on purchases. |
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Term
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Definition
| A series of transactions that includes purchases of merchandise inventory for cash or on credit, payment for puchases made on credit, sales of merchandise inverntory for cash or on credit, and collection of cash from credit sales. |
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Term
| Periodic inventory system |
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Definition
| A system for determining inventory on hand by periodically taking a physical count. |
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Term
| Perpetual Inventory System |
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Definition
| A system for determining inventory on hand by keeping continous records of the quantity and, usually, the cost of individual items as they are bought and sold. |
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Term
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Definition
| A temporary account used under the periodic inventory system to accumulate the cost of merchandise purchased for resale during an accounting period. |
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Term
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Definition
| Discounts that buyers take for early payment of merchadise; the Purchases Discounts acccount is a contra-purchases account used under the perodic inventory system. |
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Term
| Purchases Returns and Allowances account |
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Definition
| A contra-purchases account used under the periodic inventory system to accumulate cash refunds, credits on account, and other allowances made by suppliers. |
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Term
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Definition
| A discount given to a buyer for early payment of a sale made on credit; the Sales Discounts account is a contra-revenue account. |
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Term
| Sales Returns and Allowances account |
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Definition
| A contra-revenue account used to accumulate cash refunds, credits on account, and other allowances made to customers who have received defective or otherwise unsatisfactory products. |
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Term
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Definition
| A deduction (usually 30 percent or more) off a list or catalogue price, which is not recorded in the accounting records. |
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