Part 1 (8 points): List four procedures that a business should use to control it
ID: 2502339 • Letter: P
Question
Part 1 (8 points):
List four procedures that a business should use to control its cash payments.
Part 2 (9 points):
Determine the due dates and discount amount for the following example:
A software company frequently purchases merchandise on account. When it receives an invoice, a clerk puts a processing stamp on the invoice indicating the due date, the amount of any discount, and the amount to be paid.
The following invoices were received during March:
S. No
Invoice Number
Invoice Date
Credit Terms
Invoice Amounts
1.
2456
January 5
2/10, n/30
$3,000.00
2.
7895
January 7
3/10, n/30
$5,500.00
3.
6785
January 12
2/15, n/60
$729.95
4.
7859
January 23
2/10, n/30
$1,526.50
Instructions: The first invoice has been completed as an example. Prepare a form similar to the one that follows using your spreadsheet software. For each invoice do the following:
S. No
Invoice Number
Invoice Date
Credit Terms
Invoice Amounts
1.
2456
January 5
2/10, n/30
$3,000.00
2.
7895
January 7
3/10, n/30
$5,500.00
3.
6785
January 12
2/15, n/60
$729.95
4.
7859
January 23
2/10, n/30
$1,526.50
Explanation / Answer
A
B
C
D
E
F
G
Invoice Number
Invoice Date
Credit Terms
Invoice Amount
Due Date =B+No. of Days indicated in first term indicating Discount percentage
Discound Amount =D*Percentage given in first term i.e.2 in first Invoice
Amount to be Paid(=D-F)
2456
5-Jan
2/10, n/30
3000
15-Jan
60
2940.00
7895
7-Jan
3/10, n/30
5500
17-Jan
165
5335.00
6785
12-Jan
2/15, n/60
729.95
27-Jan
14.599
715.35
7859
23-Jan
2/10, n/30
1526.5
2-Feb
30.53
1495.97
A
B
C
D
E
F
G
Invoice Number
Invoice Date
Credit Terms
Invoice Amount
Due Date =B+No. of Days indicated in first term indicating Discount percentage
Discound Amount =D*Percentage given in first term i.e.2 in first Invoice
Amount to be Paid(=D-F)
2456
5-Jan
2/10, n/30
3000
15-Jan
60
2940.00
7895
7-Jan
3/10, n/30
5500
17-Jan
165
5335.00
6785
12-Jan
2/15, n/60
729.95
27-Jan
14.599
715.35
7859
23-Jan
2/10, n/30
1526.5
2-Feb
30.53
1495.97