| A | B |
|---|
| Net Sales | Sales revenue less sales returns & allowances and sales discounts |
| Gross Profit | net sales less cost of goods sold |
| Perpetual Inventory System | inventory system in which two entries are required each time there is a sale of merchandise |
| Purchase Discount | a cash discount claimed by a buyer for prompt payment of a balance due |
| Sales | Primary source of revenue for a merchandising company |
| Periodic Inventory System | an inventory system in which cost of goods sold is determined only at the end of an accounting period |
| Sales Discount | a reduction given by a seller for prompt payment of a credit sale |
| Cost of Good Sold | the total cost of merchadise sold during the period |
| Contra Revenue Account | an account subtracted from Sales on a merchandising company's income statement |
| Operating Expense | expense related to generating revenues by the selling of goods or services |
| Cost of Goods Available for Sale | beginning inventory plus net purchases |
| Net Purchases | purchases minus purchase returns & allowances and purchase discounts |
