Fazul Ggg.docx

A deduction allowed from the invoice price of goods if payment is made within a specified period of time is called a trade discount. True False

6-6. Merchandise with a list price of $100, subject to a trade discount of 40 percent and sold with credit terms of 2/10, n/60, would cost the buyer $58.80 if payment is made within the discount period. True False

6-7. When goods are shipped under freight terms of FOB shipping point (FOB factory), the buyer of the goods pays the freight charges. True False

6-8. When a return of merchandise requires the buyer to notify the seller of the reduction in the invoice due to the return, the memorandum sent by the buyer is called a debit memorandum. True False

6-9. The cost of goods sold is determined by adding the cost of purchases to the beginning merchandise inventory and subtracting the ending merchandise inventory. True False

6-10. An income statement in which the details of the cost of goods sold are shown is called a single-step income statement. True False