Full Payment
Chapter VI
Bills, Receipts And
Accounts
Try to understand clearly the meaning of all the business terms you have to
use.
The terms "bill" and "invoice" usually mean the same thing, that is, a "Bill
of Sale / Buy-Sell Agreements." This applies to goods sold, or services rendered.
The merchant sends you an itemized invoice of the goods you ordered and he
has shipped.
The carpenter sends you an itemized bill of the work done by your order.
Such a document should be regarded not as a "dun," but rather as a record of
the contract or transaction.
In the foregoing case the merchant and the carpenter are the creditors, the
recipient of the goods or work is the debtor.
BILLS FOR GOODS
In writing out a bill the date is the first thing to be considered. This
should be the same in form as a business letter.
This form will serve as an illustration:
Glenwood, N. J. October 1, 1910. Robert Brown To George L. White, Dr. Sept
2. For 25 lbs. sugar, at .06 . . .$1.50 " 6. " 30 lbs. ham, at .20 . . . .
6.00 " 14. " 100 lbs. flour, at .03-1/2 . 3.50 ---- Received payment, $11.00
SIGNATURE ON PAYMENT
Wholesale houses send such bills as soon as the goods are shipped or
delivered, though the payment, as per agreement, is not to be made for
thirty, sixty or ninety days.
Where there is a running account, that is, frequent orders, with total
payments never completed, it is customary for the seller, at the beginning
of a calendar month to send to the creditor a "statement." This statement
does not repeat the items of the bills rendered, its purpose being to show
the balance due to date.
BILLS FOR LABOR
Where a mechanic or laborer is employed by the day at a fixed wage, the
length of time and dates should be given.
Richmond, Va. November 3, 1910. Charles M. Pratt, To John Smith, Dr. To 4
days, from Oct. 1st to 4th inclusive, at $2.00..........$8.00 To 2 1/2 days,
Oct. 10th, 11th and 12th.................... 5.00 To 3 days, Oct. 17th, 18th
and 19th ....................... 6.00 ------ Received payment, $19.00
Signature.
This bill is just as transferable as a mortgage. If for any reason Mr. Smith
should decide to sell it, say to Robert Brown, he should make the following
endorsement across the back:
"In consideration of ------ dollars, the receipt of which is hereby
acknowledged, I do hereby sell and assign to Robert Brown, the written
account, which is justly due from the within named Charles W. Pratt, and I
hereby authorize the said Robert Brown to collect the same. "John Smith."
"Newburg, N. Y. November 1, 1910."
Regarded simply from a business viewpoint and without considering ethics,
"Honesty is the best policy."
Bills, where possible, should be promptly paid.
Prompt payment is a guarantee of credit and credit is the heart if not the
soul of business.
Never, if it can be avoided, buy goods on the installment plan.
Be sure to get a receipt for all payments you make, and be equally sure to
keep the receipt where you can find it.
Examine all bills and invoices; compare them with the goods received, and no
matter what your faith in the seller's care and honesty, calculate for
yourself the price of each item, and be sure that the total is correct.
DISCOUNT IN TRADE
It is a business custom, when a bill is paid before it is due, to allow a
discount. This may be the legal rate of interest, or any percentage agreed
on in advance.
Sometimes wholesale merchants or manufacturers grant esteemed customers, in
consideration of prompt payments, a discount from the regular prices. This
is known as "trade discount."
We often read of two or more discounts. A store keeper buys a bill of goods
for $350 and is granted 20% and 5% from the selling price.
This does not mean a discount of 25% as the uninitiated might think. The 20%
is deducted from the $350, that is, $70, leaving $280. Then the 5%, $14, is
deducted from this, leaving $260.
Partial payments are not endorsed on the bill. The receipt is written on a
separate piece of paper. It differs from the usual receipt in that the one
is "in full payment" and the other "on account."
Receipt no bill before it is actually paid.
Some one has translated the letters "C. O. D." into "Come omejitly Down."
The Collect on Delivery usually accompanies goods sent by express.
FORMS OF RECEIPTS
A receipt for a partial payment:
Leavenworth, Kansas. December 7, 1910. $75.00 Received from Charles Long
seventy-five dollars on account. Henry S. Somers.
A receipt in full:
San Diego, Cal. July 27, 1910. $260.75 Received from N. O. Taylor, two
hundred and sixty 75-100 dollars, in full payment to date. Samuel G. Novris.
Another form:
Portland, Me. October 20, 1910. $40.00 Received from Thomas Moore, ten cords
of hardwood, at $4.00 a cord, the sum to be applied to his account. Daniel
Forman.
In payment of rent:
$17.00 Received from William Forbes seventeen dollars in full payment of
Rent Receipts and
Leases No. 24 West Street, for the month ending October 31, 1910.
Philip F. Ross.
Where one person pays for another:
Wilmington, Del. August 17, 1910. $80.00 Received from Alfred Thompson
eighty dollars to apply to the account of Hiram O. Wells. Baker Jones & Co.,
per, S. N. Thorp.
Receipts and other documents signed with a mark X should be witnessed.
Payment on a note:
Bridgeport, Conn. July 1, 1910. $150.00 Received from Casper N. Work one
hundred and fifty dollars to apply on the payment of his note to me for six
hundred dollars, dated March 8, 1910. Ruben Hoyt.
The maker of the note should, in addition to getting his receipt, have the
amount of his payment endorsed on the back of the note by the holder.
Where a receipt is given to the administrator of an estate his position
should be named as "Robert Fields, administrator of the estate of John
Jones, deceased."
WHAT IS AN ORDER?
An order is a command or instruction by one person to another to do a stated
thing.
An order may be given for the delivery of goods or the payment of cash.
This is the usual form:
Dayton, Ohio. August 3, 1910. Mr. G. W. McBride: Please deliver to Edward
Lott goods from your store to the amount of ten dollars, and charge to my
account. F. T. Leroy.
This would be an order for cash:
Holden, Ind. June 18, 1910. $30.00 Mr. P. T. Mayhew. Please pay to Thomas
Jackson thirty dollars and charge same to my account. F. R. Wilson.
A DUE BILL
The customary form of a due bill is:
Durham, N. C. May 1, 1910. $10.00 Due George Smith ten dollars, payable in
merchandise from my store. S. T. Long. |
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