and cost of grows, maintaining count the items on hand. Currently The company's bank requires up-to-date information on jected revenue growth for the store over the next two years is 10% COm a What would the benefits be for Jean-Pierre if a perpetual inventory system were imp h Are there any drawbacks for the company in implementing a perpetual inventory sy Instructions c What would you recommend for the pet supply store? ES.2 (LO 1,2,3, 4, 5, 6) K The following are some of the terms discussed in the chapter 9. Sales discounts 1. Gross profit 2 Perpetual inventory system 3. Cost of goods sold 4Purchase returns 10. FOB destination 11. Sales allowance 12. Non-operating activities 5. Freight out 6 FOB shipping point 13. Profit margin 14. Contra revenue account 7. Periodic inventory system 15. Merchandise inventory &. Subsidiary ledger 16. Purchase discounts Exc Instructions Match each term with the best description below. Each term may be used more than once, or may not be used at all An expense account that shows the cost of merchandise sold a. mar A group of accounts that share a common characteristic, such as all inventory accounts An account, such as Sales Discounts, that is deducted from a revenue account on the in- b. c. come statement The return of unsatisfactory purchased merchandise d. Freight terms where the seller will pay for the cost of shipping the goods e. An inventory system where a physical inventory count is required to determine inventory on hand and establish cost of goods sold A reduction in price given to a customer for unsatisfactory inventory Sales revenue less cost of g0ods sold h. Revenues, expenses, gains, and losses that are not part of the company's main operations i. Freight terms where the buyer will pay for the cost of shipping the goods j. An inventory system where the cost of goods sold is calculated and recorded with every sales transaction k. An asset that shows the cost of goods purchased for resale 1. Profit divided by net sales m. A price reduction given by a seller for early payment on a credit sale n. Danand and