Big Company has a policy of always taking the cash discounts offered by vendors,even if it doesn't pay within the discount period.Big Company thinks that many of the vendors won't notice,or if they do notice won't bother to send another bill for a small amount.
On May 5,Big Company bought $5,000 of merchandise from Little Company,terms 2/10,n/30,FOB destination.Freight on the shipment was $40.
A.How many days does Big Company have to pay the bill and legitimately take the discount?
B.If Big Company pays within the discount period,how much should it pay Little Company?
C.Who should pay the freight on the shipment,Big Company or Little Company?
D.Is it ethical for Big Company to take the cash discount even though it does not pay within the discount period?

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The Answer of Big Company has a policy of always taking the cash discounts offered by vendors,even if it doesn't pay within the discount period.Big Company thinks that many of the vendors won't notice,or if they do notice won't bother to send another bill for a small amount.
On May 5,Big Company bought $5,000 of merchandise from Little Company,terms 2/10,n/30,FOB destination.Freight on the shipment was $40.
A.How many days does Big Company have to pay the bill and legitimately take the discount?
B.If Big Company pays within the discount period,how much should it pay Little Company?
C.Who should pay the freight on the shipment,Big Company or Little Company?
D.Is it ethical for Big Company to take the cash discount even though it does not pay within the discount period?

Big Company Has a Policy of Always Taking the Cash