Chapter 12 article

http://query.nytimes.com/mem/archive-free/pdf?_r=1&res=9A06E4DB113CE733A25755C1A9619C946796D6CF&oref=slogin
Summary:
This is an article from The New York Times in July 6th, 1916. This is an article that talks about the problem of cash discounts which still exists today. The problem of cash discounts it is talking about in the article is that is cash discounts useful, and should they abolished cash discounts. Cash discounts’ primary purpose is to encourage business to quickly pay their bills. However, because of the growth of the banking system, cash discounts have been largely reduce. Therefore, some people found there are no point to give out discounts, since the discounts are so little which they can’t encourage anyone to pay faster.

Connection:
In chapter 12.3, it introduces cash discount. In order to encourage the customers to pay promptly or early, cash discounts have been offered to the consumer. Although this article is about a century ago, this issue still exists. From the textbook, we can see that most of the discounts are around one to two presents when the customer pays within a certain days. However, one or two presents discounts are not going to make that much difference if the customers purchase a small among of merchandises. In this case, those customers are not going to pay earlier for the discounts. As a result, the cash discount may not achieve its original purpose when it is offer to the small business.

Personal Reflections:
Even though the article is very old, I think it brings out an important issue that most students never think of. After I read this article, I do want to find out more about this topic: “Is cash discount effective on encouraging customer to pay on time?” I am also thinking besides cash discount some there other methods that may be as effective or more effective and are able to apply to both large and small business to get customers pay one time, such as providing some special services.

Chapter 11 article

http://www.mbtmag.com/article/CA6600235.html&
Summary
This article is about the latest version of an IBM System named Info ERP XA. This system is a comprehensive system that can master order processing, inventory management, production reporting and many other functions. Compare to the previous system, info ERP XA 7.8 been improved in a lot of area. It is faster in retrieving data and all other performance. It can also automatically update the accounts such as accounts receivable, accounts payable, and cash. Besides, this version updates the currency decimal point for various foreign monies. Therefore, the newest version of info ERP XA helps the accountants save up a lot of time.

Connection
In chapter 11.5, the book talks about the history of the perpetual inventory system. First, people uses a card file to record all the information, and then made copies of receiving reports every time. All the financial statements were also written out. In now days, people will do the inventory management and financial statements on the computer. Now we also can use only a single system to do all those things, and it has so many extra functions, so the chance of making a mistake has reduced to the lowest.

Personal Reflection
After I read this article I am amaze by the numbers of things that the Info ERP XA can actually do. I realized that I really have a very limited knowledge of the accounting world. Before I thought that the financial statements and inventory management are all done in Microsoft Office. Then later on I knew that there are some specific softwares for doing those kinds of things such as Simple Accounting. However, I never thought of that one single system can manage to do all of the things in accounting.