Chapter 6 Notes - class.docx

Merchandise InventoryPayment terms with supplier dictates amount paidwhen o Eg 210 N30means that a 2 discount can be taken if payment is made within 10 days otherwise balance is due in 30 daysPurchase DiscountsCIL account with cr Balance written expenses accountPurchase ReturnsAllowanceCr balance AccountMerchandise returns creditFreightincost to transport product to us o Shipping terms dictate who pays freightFOB destinationtitle changes when the goods reach the buyerSeller pays freightFOB shipping pointtitle ch