The Video Store Co is owned and operated by Todd

The Video Store Co. is owned and operated by Todd Shovic. The following is an excerpt from a
conversation between Todd Shovic and Susan Mastin, the chief accountant for The Video
Store. Todd: Susan, I’ve got a question about this recent balance sheet.Susan: Sure, what’s
your question?Todd: Well, as you know, I’m applying for a bank loan to finance our new store
in Three Forks, and I noticed that the accounts payable are listed as $110,000.Susan: That’s
right. Approximately $90,000 of that represents amounts due our suppliers, and the remainder
is miscellaneous payables to creditors for utilities, office equipment, supplies, etc.Todd: That’s
what I thought. But as you know, we normally receive a 2% discount from our suppliers for
earlier payment, and we always try to take the discount.Susan: That’s right. I can’t remember
the last time we missed a discount.Todd: Well, in that case, it seems to me the accounts
payable should be listed minus the 2% discount. Let’s list the accounts payable due suppliers
as $88,200, rather than $90,000. Every little bit helps. You never know. It might make the
difference between getting the loan and not.How would you respond to Todd Shovic’s
request?View Solution:
The Video Store Co is owned and operated by Todd
SOLUTION-- http://expertanswer.online/downloads/the-video-store-co-is-owned-and-operated-
by-todd/

See Answer here expertanswer.online

Powered by TCPDF (www.tcpdf.org)