| Acctg Ch 6 |
Definitions |
| Cost of Merchandise Sold | The cost is reported as en expense when merchandise is sold. |
| Gross Profit | Sales - CMS |
| Merchandise Inventory | Unsold merchandise at end of an acctg period. |
| Net Income | Gross Profit - Operating expenses |
| Sales | The total amt charged customers for mdse sold, including cash sales and sales acct. |
| Sales Ret. & Allow. | From the seller's view, returned mdse or an adjmnt. for defective mdse. |
| Sales Discount | From the seller's view, discounts that a seller may offer the buyer for early payment. |
| Net Sales | - sales ret. & allow. and sales discounts from sales. |
