Seasonal dating credit terms

13-Oct-2016 07:36

For example, suppose a customer is granted credit with terms of 2/10, net 30.

If the stated terms are net 60, the customer has 60 days from the invoice date to pay, and no discount is offered for early payment. Scott and Sons is a manufacturer of lawn and garden products with a seasonal dating policy that is tied to the growing season._ Chapter Credit Management 28 PART Seven C P Q R B KEY NOTATIONS Cost per unit Price received per unit Quantity sold Discount rate In any sale, one of the most important decisions made by the seller is whether to grant credit and, if credit is granted, the terms of the credit sale.As with many other decisions, there is variation from company to company, but credit policies tend to be similar within industries.When sales are seasonal, a firm might use seasonal dating. Payments for winter shipments of fertilizer might be due in the spring or summer.A firm offering 3/10, net 60, 1 May dating, is making the effective invoice date 1 May.

If the stated terms are net 60, the customer has 60 days from the invoice date to pay, and no discount is offered for early payment. Scott and Sons is a manufacturer of lawn and garden products with a seasonal dating policy that is tied to the growing season.

_ Chapter Credit Management 28 PART Seven C P Q R B KEY NOTATIONS Cost per unit Price received per unit Quantity sold Discount rate In any sale, one of the most important decisions made by the seller is whether to grant credit and, if credit is granted, the terms of the credit sale.

As with many other decisions, there is variation from company to company, but credit policies tend to be similar within industries.

When sales are seasonal, a firm might use seasonal dating. Payments for winter shipments of fertilizer might be due in the spring or summer.

A firm offering 3/10, net 60, 1 May dating, is making the effective invoice date 1 May.

The stated amount must be paid on 30 June, regardless of when the sale is made.