Ch 6 DIscussion CP 6-2 Purchases accounts payable Rustic Furniture Co. is owned and operated by Cam Pfeifer The following is an excerpt from a conversation between Cam Pfelfer and Mitzi Wheeler, the chief accountant for Rustic Furniture Co: Cam Mitzil, I've got a question about this recent balance sheet. Mitzi: Sure, what's your question? Cam: Well, as you know, I'm applying for a bank loan to finance our new store in Garden Grove, and I noticed that the accounts payable are listed as $320,000. Mitzl: That's right. Approximately $275,000 of that represents amounts due our suppliers, and the remainder is miscellaneous payables to creditors for utilities, office equipment, supplies etc Cam: That's what I thought. But as you know, we normally receive a 2% discount from our suppliers for earlier payment, and we always try to take the discount. Mitzl: That's right.Ican't remember the last time we missed a discount. Cam Well, in that case, It seems to me the accounts payable should be listed minus the 2% discount. Let's list the accounts payable due suppliers as $314.500, rather than $320,000 Every little bit helps. You never know. It might make the difference between getting the loan and not How would you respond to Cam Pfeifer's request? Displaying 1 ta SAMSUNG