Effective September 1, a company initiates seasonal dating
as a component of its credit policy, allowing wholesale customers
to make purchases early but not requiring payment until the retail
selling season begins. Sales occur as follows:
Date of sale . . . Quantity sold
September 1 . . . 300 units
October 1 . . . . 100 units
November 1 . . . . 100 units
December 1 . . . . 150 units
January 1 . . . . .50 units
• Each unit has a selling price of $10, regardless of the
date of sale.
• The terms of sale are 2/10 net 30, January 1 dating.
• All sales are on credit.
• All customers take the discount and abide by the terms
of the discount policy.
• All customers take advantage of the new seasonal dating
• The peak selling season for all customers is mid-
November to late December.
For the selling firm, which of the following is not an expected
advantage to initiating seasonal dating?