=+SA 6-2 Purchases discounts and accounts payable The following is an excerpt from a conversation between Ted

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=+SA 6-2 Purchases discounts and accounts payable The following is an excerpt from a conversation between Ted Mackie and Laurie Van Dorn. Ted is debating whether to buy a stereo system from Classic Audio, a locally owned electronics store, or Sound Unlimited, an online electronics company.

Ted: Laurie, I don’t know what to do about buying my new stereo.

Laurie: What’s the problem?

Ted: Well, I can buy it locally at Classic Audio for $490.00. However, Sound Unlimited has the same system listed for $499.99.

Laurie: So what’s the big deal? Buy it from Classic Audio.

Ted: It’s not quite that simple. Sound Unlimited said something about not having to pay sales tax, since I was out of state.

Laurie: Yes, that’s a good point. If you buy it at Classic Audio, they’ll charge you 6% sales tax.

Ted: But Sound Unlimited charges $13.99 for shipping and handling. If I have them send it next-day air, it’ll cost $24.99 for shipping and handling.

Laurie: I guess it is a little confusing.

Ted: That’s not all. Classic Audio will give an additional 1% discount if I pay cash. Otherwise, they will let me use my VISA, or I can pay it off in three monthly installments.

Laurie: Anything else???

Ted: Well . . . Sound Unlimited says I have to charge it on my VISA. They don’t accept checks.

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