accounting

posted by .

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 -

    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

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. accounting

    A new company called Bloomner construct, buys and sells furniture. During January the following happens: 1. The owner of the company pays in $50 000 into the cash, as starting capital. 2. The bank grants the company a bank loan of …
  2. Math

    1. Ned’s Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned’s decides to send in a $2,000 partial payment. By what date must the partial payment be …
  3. Math

    Ned’s Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned’s decides to send in a $2,000 partial payment. By what date must the partial payment be sent …
  4. Math

    Ned’s Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned’s decides to send in a $2,000 partial payment. By what date must the partial payment be sent …
  5. business math please help me

    Ned’s Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned’s decides to send in a $2,000 partial payment. By what date must the partial payment be sent …
  6. MATH

    Ned’s Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned’s decides to send in a $2,000 partial payment. By what date must the partial payment be sent …
  7. Math

    I DO NOT understand this at all and I worked on it and came up with answers but they were wrong?
  8. Math

    I DO NOT understand this at all and I worked on it and came up with answers but they were wrong?
  9. math

    Ned’s Sheds purchases building materials from Timber town Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned’s decides to send in a $2,000 partial payment. By what date must the partial payment be …
  10. math

    Ned's Sheds purchases building materials from Timber town Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned's decides to send in a $2,000 partial payment. By what date must the partial payment be sent …

More Similar Questions