39825794
Description
Flashcards by Kyra Louthan, updated 18 days ago
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Created by Kyra Louthan
18 days ago
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| Question | Answer |
| Cash Discount | A discount for prompt payment |
| Chain Discount | Two or more trade discounts that are applied to the balance remaining after the previous discount is taken. Often called series discount |
| Complement | The difference between the single discount rate and 100%. What percent the buyer will pay |
| Credit Period | The time period that sellers give buyers to pay their invoices |
| Discount Period | Reduction from the invoice price, if buyers pay the invoice within a specified time |
| Due Dates | Maturity date, or when the not will be repaid |
| End of Credit Period | Last day from date of invoice when customer can take cash discount |
| End of Month (EOM) | (also proximo) Cash discount period begins at the end of the month invoice is dated. After the 25th discount period, one additional month results |
| FOB Destination | Seller pays the freight cost until it reaches the buyer's place of business. Title doesn't transfer to the buyer until the goods reach the buyers place of business |
| FOB Shipping Point | Buyer pays the freight cost of getting the goods to the place of business and title transfers to the buyer once the goods are shipped |
| Freight Terms | Determine how freight will be paid. Most common freight terms are FOB Shipping Point and FOB Destination |
| Invoice | Document recording purchase and sales transactions |
| List Price | Suggested retail price paid by customers |
| Net Price | List price less amount of trade discount. The net price is before any cash discount |
| Net Price Equivalent Rate | When multiplied times the list price, this rate/factor produces the actual cost to the buyer. Rate is found by taking the complement of each item in the discount and multiplying them together (do not round off) |
| Ordinary Dating | Cash discount is available within the discount period. Full amount due by end of credit period if discount is missed |
| Receipt of Goods (ROG) | Used in calculating the cash discount period; begins the day that the goods are received |
| Series Discounts | Two or more trade discounts that are applied to the balance remaining after the previous discount is taken |
| Single Equivalent Discount Rate | The discount rate (%) a retailer receives when only one discount is given by the manufacturer/wholesaler |
| Single Trade Discount | The discount amount ($) a retailer receives when only one discount is given by the manufacturer/wholesaler |
| Terms of the Sale | Criteria on invoice showing when cash discounts are available, such as rate and time period |
| Trade Discount | The amount of the discount the retailers receive off the list price |
| Trade Discount Amount | List price less net price |
| Trade Discount Rate | Trade discount amount given in percent |
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