watch concepts with descriptions a. What would the benefit be tor Jean-Pierre if a perpetual inventory system were imp un b. Are there any drawbacks for the company in implementing a perpetual inventory system? c. What would you recommend for the pet supply store? E5.2 (LO 1, 2, 3, 4, 5, 6) K The following are some of the terms discussed in the chapter: 1. Gross profit 9. Sales discounts 2. Perpetual inventory system 10. FOB destination 3. Cost of goods sold 11. Sales allowance 4. Purchase returns 12. Non-operating activities 5. Freight out 13. Profit margin 6. FOB shipping point 14. Contra revenue account 7. Periodic inventory system 15. Merchandise inventory 8. Subsidiary ledger 16. Purchase discounts Exercises 5-55 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 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 come statement The return of unsatisfactory purchased merchandise Freight terms where the seller will pay for the cost of shipping the goods 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 goods soldes Revenues, expenses, gains, and losses that are not part of the company's main operations Freight terms where the buyer will pay for the cost of shipping the goods An inventory system where the cost of goods sold is calculated and recorded with every sales transaction An asset that shows the cost of goods purchased for resale Profit divided by net sales A price reduction given by a seller for early payment on a credit sale Record and post purchase an -pepealt BEZ ILO 2) AP Stellar Stores is a new company that started operations on March 1, 2021. The com any has decided to use a perpetual inventory system. The following purchase transactions occurred in March: Mar. 1 Stellar Stores purchases $9.000 of merchandise for resale from Octagon Wholesalers, terms 2/10, n/30, FOB shipping point