Tracking Supplier Payment Terms for Discounts

Steps:

• Cash discounts are incentives from suppliers for early payment within a specified period.
• These discounts appear in supplier invoices with terms like "2/10 net 30" (2% off if paid in 10 days).
• To claim them, track invoice receipt dates and due dates accurately.
• Full records enable timely payments without missing deadlines.

Why B is correct:

• Maintaining full accounting records documents all supplier invoices, terms, and payment histories, ensuring awareness and compliance with discount conditions per standard accounting principles.

Why the others are wrong:

• A: Prompt invoicing speeds up customer payments to Elaine but ignores her supplier obligations.
• C: Bulk purchases may yield quantity discounts, not time-based cash discounts.
• D: Credit checks assess customer risk for sales, unrelated to supplier discount tracking.

Final answer: B