5. TF.06-030 When a large quantity of merchandise is purchased, a reduction allowed on the sale price is called a trade discount. True False 6. TF.06-031 A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is called a cash discount. True False 7. TF.06-033 If the ownership of merchandise passes to the buyer when the seller delivers the merchandise to the carrier, the terms are stated as FOB destination. True False 8. TF.06-034 A sale of $750 on account subject to a sales tax of 6% would be recorded as an account receivable of $750. True False