Key Terms Chapter 7 Discounts: Trade and Cash

Questão	Responda
Cash Discount	A discount for prompt payment
Chain Discount	Two or more trade discounts that are applied to the balance remaining after the previous discount is taken. Often called series discount
Complement	The difference between the single discount rate and 100%. What percent the buyer will pay
Credit Period	The time period that sellers give buyers to pay their invoices
Discount Period	Reduction from the invoice price, if buyers pay the invoice within a specified time
Due Dates	Maturity date, or when the not will be repaid
End of Credit Period	Last day from date of invoice when customer can take cash discount
End 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
FOB Destination	Seller 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
FOB Shipping Point	Buyer pays the freight cost of getting the goods to the place of business and title transfers to the buyer once the goods are shipped
Freight Terms	Determine how freight will be paid. Most common freight terms are FOB Shipping Point and FOB Destination
Invoice	Document recording purchase and sales transactions
List Price	Suggested retail price paid by customers
Net Price	List price less amount of trade discount. The net price is before any cash discount
Net Price Equivalent Rate	When 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)
Ordinary Dating	Cash discount is available within the discount period. Full amount due by end of credit period if discount is missed
Receipt of Goods (ROG)	Used in calculating the cash discount period; begins the day that the goods are received
Series Discounts	Two or more trade discounts that are applied to the balance remaining after the previous discount is taken
Single Equivalent Discount Rate	The discount rate (%) a retailer receives when only one discount is given by the manufacturer/wholesaler
Single Trade Discount	The discount amount ($) a retailer receives when only one discount is given by the manufacturer/wholesaler
Terms of the Sale	Criteria on invoice showing when cash discounts are available, such as rate and time period
Trade Discount	The amount of the discount the retailers receive off the list price
Trade Discount Amount	List price less net price
Trade Discount Rate	Trade discount amount given in percent

Próximo

Key Terms Chapter 7 Discounts: Trade and Cash

Descrição

Resumo de Recurso

Semelhante

	Criado por Kyra Louthan aproximadamente 2 anos atrás