Identify the implications and accounting of sales discounts for businesses.

Step 1 Review the scenario. On April 18, 2016, Bontanica Company,..

Identify the implications and accounting of sales discounts for businesses.

Step 1 Review the scenario.

On April 18, 2016, Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2016.

Step 2 Post to the discussion board.

Respond to the following questions and, if appropriate, include personal experience as part of your answers.

  • Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount, even though the discount period had expired.
  • Think of a job you, a friend, or family member has had. Have there been any “friends and family” discounts given out?
  • Is it important for a company to keep track of how much money in discounts is given out to friends and family members of employees?
  • What are the implications of allowing discounts for friends and family?
  • Should discounts only be given out to the employee?
  • What are your thoughts from an employee’s point of view and from a business owner’s point of view?

Step 3 Read other students’ posts and respond to at least two other students.

Again, use any personal experience if appropriate to help support or debate other students’ posts. If differences of opinion occur, debate the issues professionally and provide examples to support your opinions.

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