Are friend looking for accounting terms and definitions around sales, inventory and cost of items sold? below they are:

Sales discount – A reduction provided by a seller for prompt payment that a credit transaction sale.

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Sales invoice – A file that supports each credit sale.Sales returns and also allowances – purchase returns and also allowances indigenous the seller’s perspective. See purchase return and also Purchase allowance, above.Net sales – Sales less sales returns and allowances and also less sales discounts.Sales revenue (Sales) – The primary source of revenue in a merchandising company.Contra-revenue account – an account the is offset versus a revenue account top top the earnings statement.Cost of goods sold – The total cost of merchandise sold throughout the period.Periodic perform system – an inventory device under i beg your pardon the firm does no keep detailed inventory records throughout the accounting duration but identify the price of goods sold just at the finish of an bookkeeping period.Perpetual list system – one inventory mechanism under i beg your pardon the agency keeps detailed records the the expense of each inventory purchase and sale and the records continuously display the inventory that must be ~ above hand.Raw materials – basic goods that will certainly be supplied in production but have no yet been placed into production.Work in process – That section of manufactured inventory that has been inserted into the production procedure but is not yet complete.Finished goods inventory – produced items that room completed and also ready for sale.Purchase allowance – A deduction made come the marketing price that merchandise, granted by the seller so that the buyer will save the merchandise.Purchase discount – A cash discount claimed by a buyer for note payment that a balance due.Purchase invoice – A paper that supports each credit transaction purchase.Purchase return – A return of goods from the the person who lives to the seller because that a cash or credit transaction refund.Gross profit – The excess of network sales over the expense of products sold.Gross benefit rate – Gross profit expressed as a percentage, by dividing the lot of gross benefit by network sales.Income native operations – earnings from a company’s principal operating activity; established by subtracting expense of products sold and operating expenses from network sales.Multiple-step income statement – An earnings statement that shows several steps in determining net income.Nonoperating activities -Various revenues, expenses, gains, and also losses that space unrelated to a company’s main line the operations.Operating expenses – costs incurred in the process of earning sales revenues.Other expenses and losses – A nonoperating-activities section of the earnings statement that mirrors expenses and also losses unrelated to the company’s main line of operations.Other revenues and gains – A nonoperating-activities ar of the income statement that mirrors revenues and gains unrelated to the company’s key line that operations.Single-step income statement – An earnings statement that shows just one action in determining net income.FOB destination – Freight state indicating that the seller places the goods totally free on plank to the buyer’s location of business, and also the seller payment the freight.FOB shipping point – Freight state indicating that the seller areas goods cost-free on plank the carrier, and also the buyer pays the freight costs.
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