Paul Quinn College Cash Discounts and Credit Purchases Memo
Question Description
Length should be 1-2 pages
1 inch margins all around
Double Space
Use 12 point font and left justify all text. Use a professional font (Arial, Times New Roman, Courier).
MLA or APA Format
Save as a Word Document
Reference page (should be listed on a separate page)
You are working as a summer intern at a rapidly growing organic food distributor. Part of your responsibility is to assist in the accounts payable department. You notice that most bills from suppliers are not paid within the discount period. The manager of accounts payable says the bills are organized by vendor, like the accounts payable ledger, and she is too busy to keep track of the discount periods. Besides, the owner has told her that the 1% and 2% discounts available are not worth worrying about.
Write a memo to the owner explaining why it is expensive not to take advantage of cash discounts on credit purchases. In addition, suggest a way to file (organize) supplier invoices so that they are paid within the discount period.

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