The Encore Video Store Co. is owned and operated by Sergio Alonzo. The following is an excerpt from a conversation between Sergio Alonzo and Suzie Engel, the chief accountant for The EncoreVideo Store:
Sergio: Suzie, I ve got a question about this recent balance sheet.
Suzie: Sure, what s your question?
Sergio: Well, as you know, I m applying for a bank loan to finance our new store in Cherokee, and I noticed that the accounts payable are listed as $120,000.
Suzie: That s right. Approximately $100,000 of that represents amounts due our suppliers, and the remainder is miscellaneous payables to creditors for utilities, office equipment, supplies, etc.
Sergio: That s what I thought. But as you know, we normally receive a 2% discount from our suppliers for earlier payment, and we always try to take the discount.
Suzie: That s right. I can t remember the last time we missed a discount.
Sergio: Well, in that case, it seems to me the accounts payable should be listed minus the 2% discount. Let s list the accounts payable due suppliers as $98,000, rather than $100,000. Every little bit helps. You never know. It might make the difference between getting the loan and not.
How would you respond to Sergio Alonzo s request?
Needs to be at least 100 words. I would need this by no later than 05/18/2013 12pm CT