The following are some of the terms discussed in the chapter:

Match each term with the best description below. Each term may be used more than once, or may not be used at all.

Cost of Goods Sold

Contra Revenue Account

Freight Out

FOB Shipping Point

FOB Destination

Gross Profit

Merchandise Inventory

Non-operating Activities

Perpetual Inventory System

Profit Margin

Purchase Returns

Periodic Inventory System

Purchase Discounts

Subsidiary Ledger

Sales Discounts

Sales Allowance

(a) An expense account that shows the cost of merchandise sold___________

(b) A group of accounts that share a common characteristic, such as all inventory accounts________

(c) An account, such as Sales Discounts, that is deducted from a revenue account on the income statement______________

(d) The return of unsatisfactory purchased merchandise_____________

(e) Freight terms where the seller will pay for the cost of shipping the goods_____________

(f) An inventory system where a physical inventory count is required to determine inventory on hand and establish cost of goods sold____________

(g) A reduction in price given to a customer for unsatisfactory inventory___________

(h) Sales revenue less cost of goods sold___________

(i) Revenues, expenses, gains, and losses that are not part of the company's main operations____________

(j) Freight terms where the buyer will pay for the cost of shipping the goods____________

(k) An inventory system where the cost of goods sold is calculated and recorded with every sales transaction______________

(l) An asset that shows the cost of goods purchased for resale_____________

(m) Profit divided by net sales_____________

(n) A price reduction given by a seller for early payment on a credit sale___________