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Key Terms Chapter 7 Discounts: Trade and Cash
Fichas del conjunto (24)
- 1Cash DiscountA discount for prompt payment
- 2Chain DiscountTwo or more trade discounts that are applied to the balance remaining after the previous discount is taken. Often called series discount
- 3ComplementThe difference between the single discount rate and 100%. What percent the buyer will pay
- 4Credit PeriodThe time period that sellers give buyers to pay their invoices
- 5Discount PeriodReduction from the invoice price, if buyers pay the invoice within a specified time
- 6Due DatesMaturity date, or when the not will be repaid
- 7End of Credit PeriodLast day from date of invoice when customer can take cash discount
- 8End of Month (EOM)(also proximo) Cash discount period begins at the end of the month invoice is dated. After the 25th discount period, one additional month results
- 9FOB DestinationSeller pays the freight cost until it reaches the buyer's place of business. Title doesn't transfer to the buyer until the goods reach the buyers place of business
- 10FOB Shipping PointBuyer pays the freight cost of getting the goods to the place of business and title transfers to the buyer once the goods are shipped
- 11Freight TermsDetermine how freight will be paid. Most common freight terms are FOB Shipping Point and FOB Destination
- 12InvoiceDocument recording purchase and sales transactions
- 13List PriceSuggested retail price paid by customers
- 14Net PriceList price less amount of trade discount. The net price is before any cash discount
- 15Net Price Equivalent RateWhen multiplied times the list price, this rate/factor produces the actual cost to the buyer. Rate is found by taking the complement of each item in the discount and multiplying them together (do not round off)
- 16Ordinary DatingCash discount is available within the discount period. Full amount due by end of credit period if discount is missed
- 17Receipt of Goods (ROG)Used in calculating the cash discount period; begins the day that the goods are received
- 18Series DiscountsTwo or more trade discounts that are applied to the balance remaining after the previous discount is taken
- 19Single Equivalent Discount RateThe discount rate (%) a retailer receives when only one discount is given by the manufacturer/wholesaler
- 20Single Trade DiscountThe discount amount ($) a retailer receives when only one discount is given by the manufacturer/wholesaler
- 21Terms of the SaleCriteria on invoice showing when cash discounts are available, such as rate and time period
- 22Trade DiscountThe amount of the discount the retailers receive off the list price
- 23Trade Discount AmountList price less net price
- 24Trade Discount RateTrade discount amount given in percent
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- Descripción
- Key terms for Chapter 7 Discounts: Trade and Cash
- Creado por
- Kyra Louthan
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