This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Big Company has a policy of always taking the cash discounts offered by vendors, even if it doesn't ... (Read 59 times)

folubunmi

  • Hero Member
  • *****
  • Posts: 524
on: Jul 5, 2018
Big Company has a policy of always taking the cash discounts offered by vendors, even if it doesn't pay within the discount period.
 
  Big Company thinks that many of the vendors won't notice, or if they do notice won't bother to send another bill for a small amount.
  On May 5, Big Company bought 5,000 of merchandise from Little Company, terms 2/10, n/30, FOB destination. Freight on the shipment was 40.
  A. How many days does Big Company have to pay the bill and legitimately take the discount?
  B. If Big Company pays within the discount period, how much should it pay Little Company?
  C. Who should pay the freight on the shipment, Big Company or Little Company?
  D. Is it ethical for Big Company to take the cash discount even though it does not pay within the discount period?
  What will be an ideal response?

Question 2

The Social Security, Medicare, and FUTA tax accounts are debited when the taxes are actually paid to the IRS.
 a. True
   b. False
   Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kjo;oj

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 5, 2018
Answer to Question 1

A. 10 days; B. 4,900 = 5,000 x .98; C. Little Company; D. no

Answer to Question 2

True


folubunmi

  • Member
  • Posts: 524
Reply 2 on: Jul 5, 2018
Wow, this really help

essyface1

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

The patient interview often requires note taking. The patient interview often requires note taking.
Serotonin and Risk-Taking Behavior Serotonin and Risk-Taking Behavior
In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
The executive legislative "struggle" over foreign policy The executive legislative "struggle" over foreign policy
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Summation - defined, spatial, temporal & AP generation or not

For a complete list of videos, visit our video library