Big Company has a policy of always taking the cash discounts ...

[folubunmi]

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

[kjo;oj]

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]

Thanks for the timely response, appreciate it

[LVPMS]

Wow, this really help