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What is the importance of cash discounts? It is a well known fact that both buyers and sellers benefit from cash discounts as well as retailers and wholesalers. In this weeks discussion board, I want you to tell your classmates why you think cash discounts are important? Make sure you provide at least one example to support your argument.
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- Craig, owner of Craig's Design and Landscape, takes advantage of cash discounts when purchasing from vendors whenever possible. Discuss the business reason for this decision. How does taking these discounts affect his overall expenses, cost of goods sold and net income? Then address the ethical ramifications if Craig would take the discount when paying out the discount period.CASE SUMMARY: Retailers commonly track customer's shopping patterns and target them with special offers. For example, PTS an Extra care card that, when swiped at checkout applies discounts to purchases and provides rebates called Extra Bucks to be used as cash on future purchases. Behind the scenes, PTS has gathers data on customer’s purchases and using aggregated data to target individuals with special offers. Customers who have not recently shopped may receive a discount in the mail or an online offer to incentive them to return. Questions Identify the existing ethical dilemma for companies collecting data including personally identifying data on their customers. What is your personal recommendation on what actions companies should take with regard to data collection activities?Your friend, Wendy Geiger, owns a small retail store that sells candies and nuts. Geiger acquires her goods from a few select vendors. She generally makes purchase orders by phone and on credit. Sales are primarily for cash. Geiger keeps her own manual accounting system using a general journal and a general ledger. At the end of each business day, she records one summary entry for cash sales. Geiger recently began offering items in creative gift packages. This has increased sales substantially, and she is now receiving orders from corporate and other clients who order large quantities and prefer to buy on credit. As a result of increased credit transactions in both purchases and sales, keeping the accounting records has become extremely time- consuming. Geiger wants to continue to maintain her own manual system and calls you for advice. Write a memo to her advising how she might modify her current manual accounting system to accommodate the expanded business activities. Geiger is…
- If you were a wise credit card user, under which of the following conditions would you consider using a credit card to finance an expensive purchase? a. If I haven't reached my credit limit and I really want to item b.If I believe my money situation will be better (for example, a better-paying job) in the future than it is now. c.If I have the money to pay for the item in my bank account and plan to immediately pay the balance in full. d. If my card has good rewards on it.As a company accounts payable manager, which of the following credit terms are most likely to entice you to take the cash discount? A. 2/10 net 90 B. 1/10 net 45 C. 2/10 net 60 D. 1/10 net 30You are investing your money and opening a fast-food Mexican restaurant that accepts only cash for payments. You plan on periodically issuing coupons through the mail and in local newspapers. What controls (manual) can you set-up over inventory and cash? You are investing your money and opening a fast-food Mexican restaurant that accepts only cash for payments. You plan on periodically issuing coupons through the mail and in local newspapers. What controls (manual) can you set-up over inventory and cash?
- What is the primary reason why most businesses want to sell on a credit basis if it is preferable for sellers to collect advance payments from customers and/or accept cash transactions only? Give and explain a credit/collection-related task of (a) credit manager and (b) collections manager.Overview The purpose of this discussion is to give you practice calculating and interpreting percents, budgets, sales tax, and discounts. Instructions Pick one question from the list below to answer in your initial post. Put the question number in your subject line How do you calculate sales tax? How do you calculate a discount? Explain and give examples. How is calculating sales tax different than calculating a discount? Explain and give examples. How is calculating sales tax similar to calculating a discount? Explain and give examples.Describe the who, what, where, and how of the following scenario: A customer gives his purchase to a sales clerk, who enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier.
- Could you help me produce the expected cash collection from customers?Ramona's clothing has a retail store specializing in women's clothing. the store has established a liberal return policy for the holiday season in order to encourage gift purchases.any item purchased or November and December may be returned through January 31st, with a receipt, for cash or exchange. if the customer does not have a receipt cash will still be refunded for any item under $75. If the item is more than $75, a check is mailed to the customer. whenever an item is returned, a store clerk completes a return slip, which the customer signs. the return slip is placed in special box. The store manager visits the return counter approximately once every 2 hours to authorize the return slips clerks are instructed to place the returned merchandise on the proper rack on the cell and floor as soon as possible. This year, returns at Ramona's clothing have reached an all-time high. There are large number of returns under $75 with receipts. A. How can sales clerks employed at Ramona's…You decide to start a business selling covers for smart phones in a mall kiosk. To buy inventory, you need to borrow some funds. Why are you more likely to take out a bank loan than to issue bonds? Do you have other options?
