Reference no: EM133146437

Question - Case - Ethics and professional conduct in business - On July 29, 20Y1, Ever Green Company, a garden retailer, purchased $12,000 of seed, terms 2/10, n/30, from Fleck Seed Co. Even though the discount period had expired, Mary Jasper subtracted the discount of $240 when she processed the documents for payment on August 13, 20Y1. Discuss whether Mary Jasper behaved in a professional manner by subtracting the discount, even though the discount period had expired. Things to consider in case -

How would giving a discount beyond the discount period impact receivables or interest income?

Are there banking regulations that prohibit or allow the number of days in the interest calculation to change?

Was the discount a goodwill gesture toward a customer only? If so, would it still have an impact on the financial statements?

Should the computer programmer be making the requested change, or another associate at the bank?