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(A) (i) Quotations, Orders, Letters of Complaint and Credit Notes are used by businesses when purchasing and selling goods - Junior Cycle Business Studies - Question 2 - 2015
Question 2
(A) (i) Quotations, Orders, Letters of Complaint and Credit Notes are used by businesses when purchasing and selling goods. Name two other documents used by busines... show full transcript
Worked Solution & Example Answer:(A) (i) Quotations, Orders, Letters of Complaint and Credit Notes are used by businesses when purchasing and selling goods - Junior Cycle Business Studies - Question 2 - 2015
Step 1
Step 2
Explain two reasons why businesses might give their customers cash discounts.
Answer
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To encourage payment before the due date or agreed date: Businesses benefit from quicker cash flow, which allows them to reinvest in operations and potentially reduce financing costs.
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To attract new customers or increase sales: Offering discounts can incentivize new customers to make a purchase, thereby increasing overall sales volume.
Step 3
Complete the Order Form No. 11 on the sheet supplied with this paper.
Answer
GB Ltd, Western Way, Tralee, Co. Kerry
CP Ltd Green Field Road Cavan
Date: 22/05/2015 Quotation No: 31
Quantity Description Price Each 100 pairs Boots €55 200 Sun Hats €12 200 Plastic Mats €20
Goods to be delivered to the above address within 10 days.
Signature: Gertrude Brooks Position: Purchasing Manager
Step 4
What two procedures would you recommend GB Ltd use when processing outgoing orders?
Answer
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File a copy of the order/file electronically: This ensures easy retrieval and tracking of orders, enhancing organization.
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Check that the name and address of the seller is correct: Verifying this information helps to prevent shipping errors and ensures that goods are sent to the right location.
Step 5
Complete the Credit Note No. 22 on the sheet supplied with this paper.
Answer
CP Ltd, Green Field Road, Cavan, Co. Cavan
Telephone: 049 9132131 VAT Reg. No. IE 2356731
GB Ltd, Western Way, Tralee, Co. Kerry
Date: 09/06/2015 Your Order No: 11
Quantity Description Price Each Total 5 Plastic Mats €20 €100
Reason: torn (1)
Total (excluding VAT): €100 Trade Discount: €30 Subtotal: €70 VAT: €16.1 Total (Including VAT): €86.1
Step 6