Class, Sometimes a seller may offer sales terms that permit a buyer to postpone paying for merchandise purchased. These “credit terms” are normally agreed upon prior to the sale and may include the offer of a discount if the buyer pays with a specified period. The purpose of such a discount is to encourage the buyer to pay early. Sometimes, however, the buyer will pay the discounted amount, even though he or she is paying beyond the period specified for it. Scenario: On Feb. 24 th , 2008, Lawn Ranger Company, a garden retailer, purchased $40,000 of corn seed, terms 2/10, n/30 from Nebraska Farm Company. Even though the discount period expired, Corey Gilbert subtracted the discount of $800 when he processed the documents for payment on March 25 th , 2008. Did Corey Gilbert behave in a professional manner by subtracting the discount, even though the
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