TOOLS FOR BUSINESS DECISION MAKING
TENTH EDITION MODULE REVIEW NOTES
AND CORE STATISTICAL CONCEPTS 2026
MASTER RESOURCE
◉ Freight cost incurred by seller on outgoing merchandise - Freight
Out or Delivery Expense is increased
Answer: Operating expense to the seller. Seller will usually establish
a higher invoice price for the goods, to cover the expense of shipping
◉ Purchase Return
Answer: a return of goods from the buyer to the seller for cash or
credit
◉ Purchase Allowance
Answer: a deduction made to the selling price of merchandise,
granted by the seller, so that the buyer will keep the merchandise
◉ Purchase Discount
Answer: A cash discount claimed by a buyer for prompt payment of a
balance due.
TENTH EDITION MODULE REVIEW NOTES
AND CORE STATISTICAL CONCEPTS 2026
MASTER RESOURCE
◉ Freight cost incurred by seller on outgoing merchandise - Freight
Out or Delivery Expense is increased
Answer: Operating expense to the seller. Seller will usually establish
a higher invoice price for the goods, to cover the expense of shipping
◉ Purchase Return
Answer: a return of goods from the buyer to the seller for cash or
credit
◉ Purchase Allowance
Answer: a deduction made to the selling price of merchandise,
granted by the seller, so that the buyer will keep the merchandise
◉ Purchase Discount
Answer: A cash discount claimed by a buyer for prompt payment of a
balance due.
