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." 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 of premises
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.
