bud s video store co is owned an operated by jim 357450

Bud’s Video Store Co. is owned an operated by Jim Budeski. The following is an except from a conversation between Jim Budeski and Ann Pavik, the chief accountant for Bud’s Video Store

Jim; Ann, I’ve got a question about this recent balance sheet.

Ann: Sure, what’s your question?

Jim; Well, as you known, I’m applying for a bank load to finance our new store in Coronado, and I noticed that the accounts payable are listed as $235,000.

Ann: That’s right, Approximately $190,000 of that represents amount due our suppliers, and the remainder is miscellaneous payables to creditors for utilities, office equipment supplies, etc.

Jim; That’s what I thought, But as you known, we normally receive a 2% discount from our suppliers for earlier payment, and we always try to take the discount.

Ann: That’s right. I can’t remember the last time we missed a discount.

Jim; 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 $186,200, rather than $190,000. Every little bit helps. You never know. It might make the difference between getting the loan and not.

How would you respond to Jim Budeski’s request?