Match the following terms with the appropriate definition.
A. Shrinkage
B. Credit period
C. Credit terms
D. Purchase allowance
E. Discount period
F. Gross profit
G. Periodic inventory system
H. Perpetual inventory system+
I. Sales discount
J. Purchases discounts

1. An inventory accounting method that updates accounting records for each purchase and each sale of inventory.
2. An inventory accounting method that updates the accounting records for purchases and sales of inventory only at the end of a period. 3. The time period in which reduced payment can be made by the buyer because of a cash discount offered by a seller of goods on credit.
4. The loss of inventory from theft and deterioration.
5. A cash discount granted, from the view of the purchaser intended to encourage buyers to pay amounts owed earlier.
6. Price reduction granted by the seller to a buyer of defective or unacceptable merchandise.
7. A cash discount granted from the view of the seller, indicated in the credit terms on the invoice.
8. The calculation of net sales minus cost of goods sold.
9. The description of the amounts and timing of payments from a buyer to a seller for a purchase.
10. The amount of time allowed before full payment is due.