IEA 2102 - CH2

A business which consists of products, that a company acquires to resell to customers.

This is the amount of time allowed before full payment is due.

Sellers use this tactic to encourage buyers to pay earlier.

Buyers views a cash discount as a what?

Determines who pays transportation costs and often other incidental costs of transit such as insurance.

Whenever a buyer is then responsible for paying shipping costs and bearing the risks of damage or loss when goods are in transit.

A contra revenue account which on credit sales can benefit a seller by decreasing the delay in receiving cash and reducing future collection efforts.

It is the term used to refer to the loss of inventory and it is computed by comparing the physical count of inventory with recorded amounts.

It refers to a merchandise that customers return to the seller after a sale.

The ownership of goods transfers to the buyer when the goods arrive at the buyer's place of business. The seller is instead responsible for paying shipping charges and bears the risks of damage or loss in transit.