WendyEller2-EthicsLesson-Unit7

WendyEller2-EthicsLesson-Unit7 - Class,

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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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This note was uploaded on 12/08/2009 for the course AC114 AC114 taught by Professor Duchac during the Fall '09 term at Kaplan University.

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