Question no. 1 Enter the letter for each term in the blank space beside the definition that it most closely matches. A. Sales discount B. Credit period C. Discount period D. FOB destination E. FOB shipping point F. Gross profit G. Merchandise inventory H. Purchase discount 1. Cash discount J. Trade discount 1. Goods a company owns and expects to sell to its customers. 2.Time period that can pass before a customer's payment is due. 3.Seller's description of a cash discount granted to buyers in return for early payment. 4.Reduction below list or catalog price that is negotiated in setting the price of goods. 5.Ownership of goods is transferred when the seller delivers goods to the carrier 6.Purchaser's description of a cash discount received from a supplier of goods. 7.Reduction in a receivable or payable if it is paid within the discount period. 8.Difference between net sales and the cost of goods sold. 9.Time period in which a cash discount is available. 10.Ownership of goods is transferred when delivered to the buyer's place of business. Question no. 2 Analyzing and recording merchandise transactionsboth buyer and seller On May 11, Sharjah Co. accepts delivery of S40,000 of merchandise it purchases for resale from Dammam Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Dammam $30,000. When the goods are delivered, Sharjah pays $345 to Express Shipping for delivery charges on the merchandise. On May 12, Sharjah retums $1,400 of goods to Dammam, who receives them one day later and restores them to inventory. The returned goods had cost Dammam S800. On May 20, Sharjah mails a check to Dammam Corporation for the amount owed. Dammam receives it the following day. (Both Sharjah and Dammam use a perpetual inventory system.) Required: - a. Prepare journal entries that Sharjah Co, records for these transactions b. Prepare journal entries that Dammam Corporation records for these transactions