____________________ Can Arise When an Employee of a Company Accepts

question 18

Short Answer

____________________ can arise when an employee of a company accepts a contract and the company later asserts that the employee did not have the authority to do so.

Recognize the impact of purchase discounts, sales discounts, and credit card sales on financial statements.

Identify and understand various types of inventory costs, including freight-in and the limitation of cost to purchase price less discounts.

Comprehend the role of customer and trade discounts in merchandising transactions.

Realize the financial representation of sales tax in sales transactions.

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Definitions:

Agent

A person or entity authorized to act on behalf of another, known as the principal, in dealings with third parties.

Seasonal Goods

Seasonal goods are products that are in high demand during specific times of the year, such as holiday decorations, winter clothing, or summer fruits.

Retailer

A business entity that sells goods or services directly to consumers, usually in small quantities.

Wholesaler

An entity in the distribution channel that buys goods in large quantities from manufacturers or importers and sells them to retailers or other businesses.