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ACC 231, Chapter 4

Across
Specifies the amount and timing of the payments due from the buyer to the seller for merchandise
Financial statement where a company reports its cost of goods sold
A document issued by a seller to inform a buyer that the seller has credited the account receivable of the buyer for defective merchandise or merchandise returned by the buyer
Loss of merchandise from theft and deterioration
Its two sections are selling expenses and general and administrative expenses
Section of a classified balance sheet where a company reports its inventory
A _____ inventory system updates the Inventory account only once a year
A _____ inventory system updates the Inventory account after each transaction that affects it such as purchases and sales
To close the Sales account, it is _____
The amount of time allowed before the buyer of merchandise owes the full payment to the seller
Down
This ratio is calculated by dividing the difference between net sales and cost of goods sold by net sales
Sales discounts is this type of account
Sales minus the sum of sales returns and allowances and sales discounts
The amount a buyer may deduct from an invoice for paying a seller within the discount period
Include advertising expense, sales commissions expense, and delivery expense
A document used by a buyer to indicate to the seller that the buyer has reduced its account payable to the seller for such things defective merchandise
Products a company owns and expects to sell as a part of its normal operations
Another name for the acid-test ratio
Another name for gross margin
To close the account, Sales Returns and Allowances, it is _____