CHAPTER 20 – BUSINESS DOCUMENTS tsio 1. Copy and fill in the blanks.
a. A letter of ___________ is sent from the potential buyer to the seller to find out information about goods for sale, prices and terms of sale.
b. A ___________ is sent out by the seller in response to the letter above. It contains all the information required by the buyer.
c. An ___________ is a request to purchase goods. d. A ___________ ___________ is signed as proof that the goods were delivered to the buyer. e. An ___________ is the bill sent out from the seller to the buyer of goods. f. A ___________ is issued when payment has been received.
g. A ___________ is sent out from the seller to the buyer at set times, it shows all transactions and the balance owed at the time.
2. Name four pieces of information included in terms of sale.
3. Explain what the following abbreviations mean: a. CWO b. COD c. E&OE d. VAT.
4. Sports Supplies sells sports gear to retailers in the Irish market. Sportslife, a company that owns a
chain of sports shops, bought 500 jerseys to sell in its retail outlets. The unit cost of these jerseys is €45. Trade discount is 25% and VAT is 23%. a. Calculate the cost of the jerseys before trade discount and VAT. b. Calculate the total amount paid by Sportslife, taking trade discount and VAT into account. c. Name the document that would be sent by Sports Supplies showing this information.
5. Outline three advantages of using electronic documentation for a business. 6. Explain what effective purchasing means.
7. Copy and complete the following table. Document
