A merchandiser buys and resells items, termed merchandise. Wal-Mart is an example of a merchandiser. Revenue from the sales of merchandise is called . The expense associated with the sale of merchandise is called . The merchandise that is on hand at the end of an accounting period is called The terms of sale are often indicated on the invoice that the seller sends to the buyer. The terms of payment are called credit terms, and the seller may offer a if payment is made within a specied time period, called the credit period. It is often to a customer's advantage to pay within the credit period. It is also to the seller's advantage to extend credit terms to accelerate the collection of accounts reoeivable. Examples of credit terms: Credit Term Credit Term Abbreviation 2% discount in 10 days, net in 31] days 2;"10, ni3 A customer may decide to return an item. Such returns are termed and are initiated with a . Subtracting sales discounts and sales returns and allowances from sales yields net safes