On May 18, 2018, Gardenia Co., a gardening company, purchased $10,000 of seeds, terms 2/10, n/30, from New Growth Co. Linda Davis is the secretary for New Growth Co. Even though the discount period had expired, she gave the discount of $200 when she processed the documents for payment on June 1, 2018.

Step 2

Respond to the following questions and, if appropriate, include personal experience as part of your answers.

• Discuss whether Linda Davis behaved in a professional manner by subtracting the discount, even though the discount period had expired.
• Think of a job you, a friend, or family member has had. Have there been any "friends and family" or "customer" discounts given out?
• Is it important for a company to keep track of how much money in discounts is given out?
• What are the implications of allowing discounts for friends and family? Should discounts only be given out to the employee?
• What are your thoughts from an employee's point of view and from a business owner's point of view?