4-5-11 - Cost of Goods Sold HUEC 3043 Dating Dating: the...

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Cost of Goods Sold HUEC 3043
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Dating Dating: the terms negotiated with vendors for payment of invoice Used to determine time sensitive discounts Pay careful attention because the due dates based on penalties or discounts can cost or make a large portion of money
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Dating Various types of dating- Based on relationships with vendors, amount of orders, frequency of orders, previously negotiated terms, etc. Used as leverage to negotiate better unit prices or delivery costs Types of Dating: COD-Cash on Delivery Regular Receipt of Goods End-of-Month Extra Dating Advanced Dating
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Dating COD-Cash on Delivery Very rarely used When a retailer is not given credit Often used when bills are not paid on time or are past due International Orders Pay when the goods are delivered Invoice Date is 4/15 then the COD date is 4/15 Easiest to understand of the types of dating
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Dating Regular Dating Calculated from the date of the invoice Termed as Cash Disc %/Days allowed Net 30 “3/10 Net 30” 10 days to pay to receive discount 3% Discount if paid within 10 days-if not then payment is due within 30 days of the invoice April 1-Invoice Date 3/10, net 30 Cash Discount Date? Invoice Due Date? May 15 Invoice Date 2/15REG Cash Discount Date? Invoice Due Date
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Receipt of Goods Calculated from the date the merchandise was received Used when retailers are located far from vendors Save money on mode of shipment by using a slower shipment option and extend cash discount period Expressed as 2/10ROG June 2 Invoice Date June 14 Ground Shipped Merchandise delivered 3/10ROG Cash Discount Date?
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This note was uploaded on 02/14/2012 for the course HUEC 3043 taught by Professor Freeman during the Fall '10 term at LSU.

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4-5-11 - Cost of Goods Sold HUEC 3043 Dating Dating: the...

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