Question

PLEASE ANSWER ALL OF THESE QUESTIONS↓

Assignment: Accounting for Purchases and Cash Payments

Part 1

List four procedures that a business should use to control its cash payments.

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4)

Part 2 (9 points)

Determine the due dates and discount amount for the following example:

A software company frequently purchases merchandise on account. When it receives an invoice, a clerk puts a processing stamp on the invoice indicating the due date, the amount of any discount, and the amount to be paid.

The following invoices were received during March:

S. No	Invoice Number	Invoice Date	Credit Terms	Invoice Amounts
1.	2456	January 5	2/10, n/30	$3,000.00
2.	7895	January 7	3/10, n/30	$5,500.00
3.	6785	January 12	2/15, n/60	$729.95
4.	7859	January 23	2/10, n/30	$1,526.50

Instructions: The first invoice has been completed as an example. Prepare a form similar to the one that follows using your spreadsheet software. For each invoice do the following:

Determine the due date. Assume that the software company always pays invoices within the discount period.

Calculate the discount amount, if any.

Calculate the amount to be paid.

Calculate the amount the software company will save by taking advantage of all discounts.

	Invoice Number	Invoice Date	Credit Terms	Invoice Amount	Due Date	Discount Amount	Amount to be Paid
1.	2456	Jan. 5	2/10, n/30	$3000.00	Jan. 15	$60.00	$2940.00
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