Select the term in the blank space beside the definition that it most closely matches. Credit period FOB destination 7. The amount of time allowed by a seller before payment is due from the buyer. 2. Refers to credit terms where goods in transit are owned by the seller. 3. Calculated as net sales minus cost of goods sold. 4. Purchaser's description of a cash discount received from a supplier of goods. 5. Inventory is updated for purchases and sales of inventory only at the end of a period. 6. The expense of purchasing and preparing the merchandise sold during a period. 7. Time period in which a cash discount is available 8. Refers to credit terms where goods in transit are owned by the buyer Credit period FOB destination Cost of goods sold a period. eriod. Credit period Discount period FOB destination FOB shipping point er. Credit period FOB destination s. FOB destination fa period. eriod. FOB shipping point Gross profit Periodic inventory system Purchases discount