Question
Bush Basher sells off road motorbikes on both a credit and cash basis. They stock a full range of spare parts and accessories. The business
Bush Basher sells off road motorbikes on both a credit and cash basis. They stock a full range of spare parts and accessories. The business also employs a full-time mechanic who carries out servicing and repairs on motorbikes- those sold by Bush Basher as well as those purchased from other suppliers.
Prenumbered invoices are issued for all sales and services provided. Terms are strictly n/30 and no discounts are offered. Total revenues last financial year amounted to $820000-$680000from the sale of motorbikes,$42000 for parts and accessories, and $98000 for servicing and repairs. All receipts are banked daily, and a petty cash system is in operation. Cash discounts are offered by all suppliers, and the business ensures that all discounts offer are taken. All payments are made by online bank transfers with frequent payments made to suppliers, transport companies for delivery costs on purchases, sponsorships and advertising. The mechanic is paid on every second Friday. The office manager is paid an annual salary for managing the office, and for performing the manual accounting
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