1. © 2014 Cengage Learning. All Rights Reserved. Test Prep Plans © 2014 Cengage Learning. All Rights Reserved. Chapter 24 Vocab Test Review Chapter 24 Vocab Test Review 1. Study when sleepy: Bedtime stories are for wimps. Instead of reading The Berenstein Bears, try studying for a few minutes right before hitting the hay. During sleep, the brain strengthens new memories, so there’s a good chance we’ll remember whatever we review right before dozing off. And though bedtime is primo study time, it might also help to crack open the books after cracking open those eyes in the A.M.—in the morning, the brain still has lots of room to absorb new information. 2. Space it out: A relatively new learning technique called “spaced repetition” involves breaking up information into small chunks and reviewing them consistently over a long period of time. So don’t try to memorize the entire periodic table in one sitting—instead, learn a few rows every day and review each lesson before starting anything new. 3. Learn what works: Some people are early birds; some are night owls; some prefer to study with a pal; others need complete and total silence. Experiment to find what’s most effective for you, and then stick with it! Source: http://greatist.com/happiness/better-study-tips-test

2. © 2014 Cengage Learning. All Rights Reserved. International Sales ●Goods or services shipped out of a seller’s home country to another country are called exports. ●Goods or services shipped into the buyer’s home country from another country are called imports. ●Merchandise sold to individuals or other businesses within one’s own country is referred to as domestic sales. SLIDE 2 Lesson 24-1 LO1

3. © 2014 Cengage Learning. All Rights Reserved. International Sales Compared with Domestic Sales— not covered by the same universal commercial laws ●Lack of uniform commercial laws ●Greater distances ●More complex transportation methods ●Risk of uncollected amounts is increased ●Difficult to take legal action if customer does not pay ●Unstable political conditions ●Domestic sales are much simpler SLIDE 3 Lesson 24-1

4. © 2014 Cengage Learning. All Rights Reserved. Processing an International Sale— Contract of Sale ●A document that details all the terms agreed to by seller and buyer for a sales transaction is called a contract of sale. ●The contract includes ●Description and quantity of merchandise ●Price ●Point of delivery ●Packing and marking instructions ●Shipping information ●Insurance provisions ●Method of payment SLIDE 4 LO3 Lesson 24-1

5. © 2014 Cengage Learning. All Rights Reserved. Processing an International Sale— Letter of Credit ●A letter issued by a bank guaranteeing that a named individual or business will be paid a specified amount provided stated conditions are met is called a letter of credit. ●A form signed by a buyer at the time of a sale of merchandise in which the buyer promises to pay the seller a specified sum of money, usually at a stated time in the future is called a trade acceptance. SLIDE 5 LO3 Lesson 24-1

6. © 2014 Cengage Learning. All Rights Reserved. Collecting Payment for an International Sale ●A receipt signed by the authorized agent of a transportation company for merchandise received that also serves as a contract for the delivery of the merchandise is called a bill of lading. ●A statement prepared by the seller of merchandise addressed to the buyer showing a detailed listing and description of merchandise sold, including prices and terms, is called a commercial invoice. SLIDE 6 LO3 (Continued on next slide.) Lesson 24-1

7. © 2014 Cengage Learning. All Rights Reserved. Collecting Payment for an International Sale ●A written, signed, and dated order from one party ordering another party, usually a bank, to pay money to a third party is called a draft. ●A draft is sometimes referred to as a bill of exchange. ●A draft payable on sight when the holder presents it for payment is called a sight draft. ●A draft that is payable at a fixed or determinable future time after it is accepted is a time draft. SLIDE 7 LO3 Lesson 24-1

8. © 2014 Cengage Learning. All Rights Reserved. Journalizing an International Sale SLIDE 8 LO4 June 1. Recorded international cash sale, $6,000.00. Memorandum 45. Cash June 16,000.00 Sales Lesson 24-1 International sales are a very important source of revenue for businesses throughout the world today. Cash Debit and Sales Credit

9. © 2014 Cengage Learning. All Rights Reserved. Journalizing Time Drafts—Recorded in the General Journal SLIDE 9 LO4 June 10. Received a 60-day time draft from Ramirez Co. for an international sale, $7,000.00. Time Draft No. 12. Time Drafts Receivable June 107,000.00 Sales Lesson 24-1 Time Drafts Receivable and Sales Credit

10. © 2014 Cengage Learning. All Rights Reserved. August 9. Received cash for the value of Time Draft No. 12, $7,000.00. Receipt No. 465. Journalizing Cash Receipts from Time Drafts— Cash Receipts Journal LO4 Cash Aug. 97,000.00 Time Drafts Receivable Lesson 24-1 Debit Cash and Credit Time Draft Receivable

11. © 2014 Cengage Learning. All Rights Reserved. Journalizing an Internet Sale—Must be done using a credit card (Cash Receipts Journal) SLIDE 11 LO6 March 1. Recorded Internet credit card sales, $765.00. Terminal Summary 28. Cash Mar. 1765.00 Mar 1.765.00 Sales Lesson 24-2 A credit card Internet sale is handled the same as any other cash sale. The company’s Website must be easy to navigate and safe to use. Cash Debit and Sales Credit

12. © 2014 Cengage Learning. All Rights Reserved. The End! Congratulations!!! SLIDE 12