Homework Help: accounting

Posted by natyyyy on Wednesday, April 27, 2011 at 10:57am.

Y company offers its customers credit of 2/10,n 30. Most customers take advantage of the cash discount, mailing their payment to arrive on the 10th day following the date of the invoice. However X comany, Y largest customer, has recently begun sending payments to arrive on the 30th day after invoice, while still taking the 2 percent discount. Y company colletion department has been in toch with X company regarding the taking of the discount outside the discount period ,and X company response is that it deserves to take discount whenever payment is made. After all, it is Y company biggest customer. Identify Y company possible courses of action as well as the consequences of these actions.

accounting - SraJMcGin, Wednesday, April 27, 2011 at 6:26pm
Sometimes it "works" stating that you'd love to do that, but it is against company policy and if it's broken for one, everyone will want to do that. They might except a "smaller" discount for being late. It would depend on how much you want to do to keep that customer.

Give someone an "inch" and they always want a "mile." It's best to adhere to company policy, saying that you'd "like" to break that rule, but you cannot. It could cost YOU your job!

Sra

Answer this Question

Related Questions

math - hope that someone can help me to solve this solving problems below.... ...
Account - Use the following identification codes to indicate the effects of each...
math - Cola Company is offering its preferred customers a 25% discount on its ...
maths - A shopkeeper markes his goods at 40% above the cost price but allows a ...
Finance - Carnation needs to buy a $12,500 part the part company is offering ...
Accounting - Redmon Company uses a sales journal, a purchases journal, a cash ...
financial accounting - Connection Station, an internet café, had the ...
adult education - Given Data: Total Sales: $912,500 % of customers that take ...
principle of marketing - are offers of cash to customers who purchase a ...
accounting - Santa Fe Company purchased merchandise for resale from Mesa COmpany...

For Further Reading

First Name:
School Subject:
Answer: