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.

(a) An expense account that shows the cost of merchandise sold		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(b) A group of accounts that share a common characteristic, such as all inventory accounts		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(c) An account, such as Sales Discounts, that is deducted from a revenue account on the income statement		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(d) The return of unsatisfactory purchased merchandise		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(e) Freight terms where the seller will pay for the cost of shipping the goods		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(f) An inventory system where a physical inventory count is required to determine inventory on hand and establish cost of goods sold		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(g) A reduction in price given to a customer for unsatisfactory inventory		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(h) Sales revenue less cost of goods sold		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(i) Revenues, expenses, gains, and losses that are not part of the companys main operations		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(j) Freight terms where the buyer will pay for the cost of shipping the goods		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(k) An inventory system where the cost of goods sold is calculated and recorded with every sales transaction		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(l) An asset that shows the cost of goods purchased for resale		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(m) Profit divided by net sales		select an appropriate term Cost of Goods SoldContra Revenue AccountFreight OutFOB Shipping PointFOB DestinationGross ProfitMerchandise InventoryNon-operating ActivitiesPerpetual Inventory SystemProfit MarginPurchase ReturnsPeriodic Inventory SystemPurchase DiscountsSubsidiary LedgerSales DiscountsSales Allowance
(n) A price reduction given by a seller for early payment on a credit sale