1. Marketing Essentials Chapter 16 Section 1

2.  Most retail sales will use cash, debit, or credit sales for consumer goods.  Sometimes retail sales offer layaway sales, on-approval sales, and cash-on- delivery (COD) sales.  Salespeople also handle returns, exchanges, allowances, sales tax, and shipping charges.

3.  A cash sale is a transaction in which the customer pays with cash or check.  When a customer writes a check, the salesperson may need to verify his or her identity by requesting ID.

4.  A sales check is a written record of a sales transaction.  It is a receipt to the customer.  Hand written sales checks are less common today.  Math is necessary when preparing handwritten sales checks.

5.  The bank that issues a debit card charges the merchant a flat rate per sale.  The cost of using a debit card for the merchant is far less than when the customer uses a credit card.

6.  By accepting credit cards, businesses can increase sales by as much as 40 percent.  Credit cards are the most frequently used method of payment for internet purchases.

7.  When a company accepts credit cards, it pays a fee to the bank or agency that handles the billing and recordkeeping for each card transaction processed.  The money is deposited into the businesses bank account and the credit card company deducts the service charge from the store’s bank account.

8.  Removing the merchandise from the shelf and keeping it for a customer until it is paid for is called layaway.  On-approved sale is an agreement that allows a customer to take merchandise home for further consideration.

9.  Cash-on-delivery sale is a sales transaction that occurs when a customer pays for merchandise at the time of delivery.  Sales tax is a percentage fee imposed by the government.

10.  Sales tax is paid only by the final user.  Consumers pay the cost of sales tax.  Sales tax is a regressive tax.  Internet sales, if a company does not have a physical presence in a state then they are not required to collect sales taxes on retail purchases in that state.

11.  A return is merchandise brought back for a cash refund or credit.  An allowance is a partial return of the sale price for merchandise that the customer has kept.  The cost of shipping merchandise depends on the service used, the weight of the shipment, and the distance.