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Chapter 5

Across
A percentage reduction of the sales price by a seller as an incentive for early payment before the due date. A typical way to express a sales discount is “2/10, n/30.” This means the seller will grant a 2% discount if the invoice is paid within 10 days, and the entire amount is due within 30 days.
Credits or refunds given to customers who return merchandise.
The date on which the debtor must pay the note.
A document issued to a credit customer for merchandise returned, authorizing a credit to the customer's account receivable for the amount of the sale.
The length of time from a note's inception to its maturity.
The borrower's cost of renting money from a lender. Interest is revenue for the lender and expense for the borrower.
Down
The party to whom money is owed.
The amount borrowed by a debtor and lent by a creditor.
Acronym for “free on board”; it indicates the shipment point at which the seller is free of ownership of the goods it sold. See also shipping terms.
The sum of principal and interest on the note.
Terms provided by the seller of merchandise that dictate the date on which title transfers to the buyer. A typical way to express shipping terms is through FOB terms. FOB destination means title to the goods passes to the buyer when the goods are delivered and the buyer assumes control over them. FOB shipping point means title passes on the date the goods are shipped from the seller's warehouse.
Monetary claims against a business or an individual, acquired mainly by selling goods or services and by lending money.
The party who owes money.
Inflows of resources to an entity that result from delivering goods or rendering services to customers.