126 MANAGEMENT OF DAIRY PLANTS 



available, rate of interest, storage facilities, and cost of trans- 

 portation. 



In submitting the order to the various dealers for quotations 

 it is convenient to have a blank for that purpose. A duplicate 

 should be kept in the office for reference. After the quotations 

 have been received and compared the successful bidder is noti- 

 fied that his quotation has been accepted. The quotations are 

 filed in a letter file. For convenience this file may be marked as 

 No. i. 



Promptness in Making Remittance for Goods Purchased. 

 This is an important factor in securing the lowest rate from 

 the dealer. If the firm buying is in such financial circumstances 

 that it can pay cash, that will be most satisfactory to all con- 

 cerned, and by that method it will secure the lowest quotation. 

 A business firm should have a definite time, say the tenth of 

 each month, when to pay all bills, and it is business policy to 

 arrange for having all checks for goods purchased, not including 

 material purchases which are usually paid oftener, mailed 

 promptly on that date. 



Cash Discount. Some firms allow a special cash discount 

 on accounts paid within a time designated on the bill. Such 

 bills should always be paid promptly, as the discount is usually 

 large enough to be profitable to the buyer. When entering such 

 bills in the purchase journal, the labor of bookkeeping is reduced 

 by deducting the discount on the bills and entering the actual 

 amount paid. 



RECORDS 



Receiving Record. The person who receives merchandise 

 purchased, whether he be a special receiving clerk or the butter 

 maker, should make an entry thereof in a book kept for that 

 purpose. This book is known as "the receiving book." This 

 record should state when goods were received, name of shipper, 

 kind of goods, amount, and condition in which goods were re- 

 ceived. In larger creameries the manager will often furnish the 

 receiving clerk with a memorandum of kind of goods purchased 

 and from whom purchased. On this memorandum, however, 



