Chapter 10

Sales and Marketing

10-1 Cash Sales and Sales on Account Proving Cash

Most cash registers are really computer terminals with a display screen and a scanner that is connected to a computer.

The scanner reads bar codes that tells what department, how many, what size and what product is purchased.

Computers/Cash registers also calculate sales tax, totals the sale and updates inventory records

Proving Cash – counting the money in the drawer and checking this amount against the cash register readings to see if the right amount is there.

If you have more cash than you should, your are cash over, if you have less cash than you should then you are cash short.

EX: Gretchen works as a cashier for Tops. When she started work, she put $100 in her cash register drawers at the end of her work period, her register readings should total cash received $4,672.98, and total cash paid out, $68.42. When she counted the cash in her drawer, she found $4,702.56. Was she over or short? She is short by $2.00 Do A & B on page 419

At the start of the day, March 6, Marsha put $150 change fund in her cash register. The cash register readings at the end of the day showed total cash received, $2,456.23, and total cash paid out, $55.16. The cash in the register at the end of the day was $2,555.17.

 Was the cash drawer over or short and by how much?

Over by $4.10

At the start of the day, Sue put $50 change fund in her cash register. The cash register readings at the end of the day showed total cash received, $356.20 and total cash paid out, $10.16. The cash in the register at the end of the day was $386.04.

 Was the cash drawer over or short and by how much?

Short by $10.00

At the start of the day, Jim put $35 change fund in his cash register. The cash register readings at the end of the day showed total cash received, $1,222.20 and total cash paid out, $8.60. The cash in the register at the end of the day was $1,248.60.

 Was the cash drawer over or short and by how much?

Balanced or right on!!

Sales Invoice and Credit Memo

When a seller sells goods to a buyer on credit, the seller gives the customer a sales invoice.

A sales invoice lists the good sold and delivered to the buyer. The buyer calls this form a purchase invoice…invoice is the same thing as a bill.

Credit Memo – when you buy something on credit and you need to return it, them the company gives you a credit memo…this amount can be deducted from your bill.

Customer Account Balance Most people use cash or credit to

purchase items, however, businesses generally let people purchase items on credit or on account.

At the end of the month bills are then paid for all purchases and credits….you need to keep track of all bills and credits.

10-2 Cash and Trade Discounts

Most business to business transactions begin with a purchase order…this is a form from the buyer that states all the details of the purchase and confirms money has been designated for this purchase.(it is an order for a purchase)

Most businesses get 30-90 days to pay a bill..this is called the credit period.

10-2 Cash and Trade Discounts

Cash discounts – a discount given to people to encourage them to pay their invoices early…usually expressed as 1/30…this means a person will get a 1% discount if their bill is paid within 30 days

Trade Discounts – these are reductions from the list price to their (good) business customers. Different discounts may apply to different customers and different products.

EOM – This means the buyer can claim a % discount if the bill is paid within ___ days after the end of the month shown on the invoice.

10-2 Cash and Trade Discounts

EOM – This means the buyer can claim a % discount if the bill is paid within a number of days after the end of the month shown on the invoice.

Ex. 3/10 EOM – means that the buyer will get a 3% discount if they pay the bill within 10 days after the end of the month.

10-3 Series Trade Discounts Series trade discounts – some

wholesalers give a trade discount that has two or more discounts. This means the customer is given 3 discounts on an item.

Ex: 20%, 15%, 10% - you first take 20% off, then 15% off, then 10% off.

10-4 Markup and Markdown Cash discounts – a discolunt given

to people to encourage them to pay tehri invoices early.

Chapter 10

Sales and Marketing

10-1 Cash Sales and Sales on Account Proving Cash

Most cash registers are really computer terminals with a display screen and a scanner that is connected to a computer.

The scanner reads __________ that tells what department, _______, ____________and what ________ is purchased.

Computers/Cash registers also calculate _______, _____ the sale and _______ __________ records

Proving Cash – counting the money in the drawer and checking this amount against the cash register readings to see if the right amount is there.

If you have more cash than you should, your are ____________, if you have less cash than you should then you are ____________.

EX: Gretchen works as a cashier for Tops. When she started work, she put $100 in her cash register drawers at the end of her work period, her register readings should total cash received $4,672.98, and total cash paid out, $68.42. When she counted the cash in her drawer, she found $4,702.56. Was she over or short and by how much?

_____________________________________

Sales Invoice and Credit Memo

When a seller sells goods to a buyer on credit, the seller gives the customer a ____________________.

A sales invoice lists the good sold and delivered to the buyer. The buyer calls this form a purchase invoice…invoice is the same thing as a _______________.

________________– when you buy something on credit and you need to return it, them the company gives you a credit memo…this amount can be deducted from your bill.

Customer Account Balance Most people use cash or credit to purchase

items, however, businesses generally let people purchase items on _______________________.

At the end of the month, _______ are then paid for all purchases and credits…._____________ need to keep track of all bills and credits.

10-2 Cash and Trade Discounts Most business to business transactions

begin with a _________________…this is a form from the buyer that states all the details of the purchase and confirms money has been designated for this purchase.(________

________________________) Most businesses get __________ days to pay

a bill..this is called the _________ period.

10-2 Cash and Trade Discounts

___________________– a discount given to people to encourage them to pay their invoices early…usually expressed as 1/30…this means a person will get a 1% discount if their bill is paid within 30 days

___________________– these are reductions from the list price to their _________ business customers. Different discounts may apply to different customers and different products.

10-2 Cash and Trade Discounts

EOM – This means the ____________________ _______________________________ within a number of days ______________________ shown on the invoice.

Ex. 3/10 EOM – means that the buyer will get a _______ discount if they pay the bill within ______ days after the ________________.

10-3 Series Trade Discounts

Series trade discounts – some wholesalers give a trade discount that has ___________ discounts. This means the customer is given ______ discounts on an item.

Ex: 20%, 15%, 10% - you first take ____ off, then _______ off, then _____ off.

10-4 Markup and Markdown

Cash discounts – a discolunt given to people to encourage them to pay tehri invoices early.