You work for Entertainment Supplies Pty Ltd a supplier of entertainment products to the industry. The following transactions relate to dealings with Fairy Floss Trading Pty Ltd over the month of August 2015. At the start of August, this debtor already owed $200.

Purchases

Aug 2 Invoice 765 $120 plus $12 GST

Aug 9 Invoice 791 $160 plus $16 GST

Aug 15 Invoice 823 $140 plus $14 GST

Aug 24 Invoice 845 $200 plus $20 GST

Aug 30 Invoice 891 $180 plus $18 GST

Payments (Cash)

Aug 4 Cheque 8912 $200

Aug 14 Cheque 8922 $250

Discount Received $10

Aug 29 Cheque 8937 $310 Discount Received $15

You are to:

Prepare the debtors record for Fairy Floss Trading Pty Ltd, showing all transactions

during the month of June 2015

Explain how reliability has been satisfied in your debtors record

State one benefit of the debtor taking advantage of discounts for prompt payment

State one disadvantage for your debtor making a prompt payment in order to get a

discount