5. Of W. H. Stearns & Co., Chicago, Ill., the goods outlined in Form 9. Tell them that you will honor their 30-da. draft for one half the bill, and will pay the balance in 60 da. Cancel your indebtedness to Paine Manufacturing Co., Bedford, by a sight draft on Samuel W. Bradley of the same place. Write a letter of remittance and send it with the above draft to Paine Manufacturing Co. Also write a letter to Samuel W. Bradley, notifying him of the draft you have drawn on him at sight. Make the journal entry. The following suggests what the letters should contain. I Boston, Mass., May 25, 19— 0. M. Behrns & Co. Syracuse, N. Y. Gentlemen: Inclosed find a sight draft on K. P. Shedd of your city, drawn in your favor, for Three Hundred Fifty (350) Dollars, in full settlement of account to date. Very truly yours E. R. Gaylord & Co. per m. II Boston, Mass., May 25, 19— Mr. K. P. Shedd Syracuse, N. Y. Dear Sir: We have this day drawn upon you at sight, in favor of 0. M. Behrns & Co., of your city, for Three Hundred Fifty (350) Dollars. Very truly yours E. R. Gaylord & Co. per M. JULY 2 David E. Teeter, 360 Main St., City, orders the following goods. The order is filled at the prices given herewith: 10 #5932 E. Toilet Tables at $50 3 #89 M. Chamber Sets at $80 2 #1008 O. Sideboards at $195 1 #396 Mahogany Hall Stand at $65 Terms: 3/5, 1/30, net 60 da. J NOTE. The space allowed for recording the terms of sale on a bill is generally limited, and bookkeepers find it necessary to use symbols and abbreviations to indicate them. The following list explains the meanings of the abbreviations for terms used in this work. Net 30 da. means that the bill is to be paid in thirty days without discount. 1/30 means that 1% discount will be allowed if the bill is paid within thirty days. 3/10, net 30 da., means that 3% discount will be allowed if the bill is paid within ten days, or the amount of the bill will be due in thirty days without discount. Benj. P. Freeman & Co., 924 East St., City, order the following goods: 12 # 170 Eng. Clothes Poles 5 #245 Cedar Chests 12 #495 W. Iron Bedsteads 25 #821 Parlor Lamps Fill the order. Terms: sight draft in 10 da., less 3%. Make out the bill, have it approved by the instructor, and then copy it into the sales book. Deduct the discount on the bill and in the sales book also. Draw a sight draft in favor of yourself, dating it 10 da. ahead. Write To be given to the bank July 12 on a slip of paper, pin the slip to the draft, and place both in the Business Cash envelope. Make no entry for the draft until July 12. NOTE. Some business men prefer to wait until the 10 da. have expired before drawing the draft. It is considered better, however, to draw the draft at the time of billing the goods, since the matter may be overlooked if it is deferred 10 da. Walker, Brown & Co., Albany, order: 5 #20 D Parlor Cabinets 24 #176 c Piano Chairs 10 #835 Music Cabinets 15 #821 Parlor Lamps Fill the order. Terms: draft at 30 da. from date. The goods called for in the above order will be sent by freight, and it will be necessary for you to prepare a bill of lading and the duplicates, the shipping order, and the memorandum. Study carefully the following illustration and the explanation. This is a new feature of your work; be sure you understand it thoroughly. In the box of business forms there is a pad of bill of lading blanks, and full instructions for using this form. Use the pad marked Straight Bill of Lading. BILLS OF LADING As a means of serving the convenience of both the shippers and the railway companies, the Interstate Commerce Commission approved a uniform bill of lading, for general use, June 27, 1908. This approval applies to two forms of the bill of lading as follows: the straight bill of lading and the order bill of lading. Model Bill of Lading Uniform Bill of Lading-Standard form of Straight Bill of Lading approved by the Interstate Commerce Commission by Order No. 787 of June 27, 1908 STRAIGHT BILL OF LADING-ORIGINAL-NOT NEGOTIABLE Shipper's No. RECEIVED, subject to the classifications and tariffs in effect on the date of issue of this Original Bill of Lading, at July 5, from Springfield, Mass the property described below, in apparent good order, except as noted (contents and condition of contents of packages unknown), marked, consigned and destined as indicated below, which said Company agrees to carry to its usual place of delivery at said destination, if on its road, otherwise to deliver to another carrier on the route to said destination. It is mutually agreed, as to each carrier of all or any of said property over all or any portion of said route to destination, and as to each party at any time interested in all or any of said property, that every service to be performed hereunder shall be subject to all the conditions, whether printed or written, herein contained (including conditions on back hereof) and which are agreed to by the shipper and accepted for himself and his assigns For use in connection with the Standard form of Straight Bill of Lading approved by the Interstate Commerce Commission by Order No. 787 of June 27, 1908 is an acknowledgment that a Bill of Lading has been issued and is not the Original Bill of THIS MEMORANDUM Lading, nor a copy or duplicate, covering the property named herein, and is intended solely for filing or record. Shipper's No.- RECEIVED, subject to the classifications and tariffs in effect on the date of the receipt by the carrier of the property described in the Original Bill of Lading, 519=. at from Springfield Mass. ms July the property described below, in apparent good order, except as noted (contents and condition of contents of packages unknown), marked, consigned and destined as indicated below, which said Company agrees to carry to its usual place of delivery at said destination, if on its road, otherwise to deliver to another carrier on the route to said destination. It is mutually agreed, as to each carrier of all or any of said property over all or any portion of said route to destination, and as to each party at any time interested in all or any of said property, that every service to be performed hereunder shall be subject to all the conditions, whether printed or written, herein contained (including conditions on back hereof) and which are agreed to by the shipper and accepted for himself and his assigns. Model Shipping Order (Heading) For use in connection with the Standard form of Straight Bill of Lading approved by the Interstate Commerce Commission by Order No. 787 of June 27, 1908 THIS SHIPPING ORDER at from must be legibly filled in, in ink, in indelible pencil, or in carbon, and RECEIVE, subject to the classifications and tariffs in effect on the date of issue of this Shipping Order, Springfield Mass CX Williams Shipper's No. Agent's No. July 5, 20=, the property described below, in apparent good order, except as noted (contents and condition of contents of packages unknown), marked, consigned and destined as indicated below, which said Company agrees to carry to its usual place of delivery at said destination, if on its road, otherwise to deliver to another carrier on the route to said destination. It is mutually agreed, as to each carrier of all or any of said property over all or any portion of said route to destination, and as to each party at any time interested in all or any of said property, that every service to be performed hereunder shall be subject to all the conditions, whether printed or written, herein contained (including conditions on back hereof) and which are agreed to by the shipper and accepted for himself and his assigns. NOTE. Bills of lading were lacking in uniformity until a final decision of the Interstate Commerce Commission regarding them was secured. Previous to this they were so varied in size and form as to occasion much confusion and a consequent loss of time. To obviate these difficulties, business men appealed to the Interstate Commerce Commission to issue an order that would require a uniform bill of lading for all shipments. This request resulted in many conferences between the shippers, the transportation companies, and the Commission, with the result shown in the form of the bill of lading illustrated herewith. The straight bill of lading is drawn up in a set of three papers, duplicates being made by using carbons, as follows: the straight bill of lading, original; the memorandum, an acknowledgment that a bill of lading has been issued; the shipping order. This form is not negotiable, and must be printed on white paper. The shipping order is signed by the shipper only, while the others are signed by both the shipper and the agent of the railway company. The shipping order is left with the agent; the bill of lading is sent to the purchaser of the goods; the memorandum is retained by the seller. The goods may be delivered to the purchaser without his surrender of the bill of lading. The order bill of lading is also drawn up in a set of three papers, but in this form the bill of lading must be printed on yellow paper and the duplicates on blue paper. The order bill of lading is negotiable by indorsement, and is extensively used in the shipping of freight that is not to be delivered until it is paid for. When the order bill of lading is used, the shipment is termed a Shipper's Order, and is recorded as a C.O.D. account. When an order bill of lading is used, it is customary to draw a sight draft, attach it to the bill of lading, and make the collection through a bank. The name of the bank is written after Consigned to Order of, and the name of the consignee after Notify. The consignee cannot get the bill of lading until he pays the draft, and he cannot get the goods until he surrenders the bill of lading. For this reason, the shipper's order is a C.O.D. transaction. The bill of lading must be used in connection with all out-of-town shipments, the straight bill of lading for general orders, and the order bill of lading for all orders that are not to be delivered until the goods are paid for. Observe this distinction carefully. Prepare the straight bill of lading and the duplicates; sign the shipping order and the duplicates, and then have the instructor or the freight agent sign the bill of lading and the memorandum. Place the bill of lading with the invoice, inclose both in an envelope addressed to Walker, Brown & Co., and hand it in. The shipping order should be left with the freight agent, and the memorandum placed on file by the shipper. Draw a draft, in favor of yourself, payable 30 da. from the date of the invoice. Indorse the draft properly and leave it with your bank for collection. It should be borne in mind that Walker, Brown & Co. have agreed to accept the draft, and it will be honored in due course. Make no entry in the check book. Some banks make a memorandum entry in the pass book for paper left for collection, but do not extend the amount into the money column. The straight bill of lading will always be used, unless you are otherwise instructed at the time of the transaction. Make an entry in the journal in the same way as if the accepted draft were in your possession. Make the proper record in the bill book. Refer to the model bill book, page 140. Leave W. D. Rimbach's acceptance at the bank for collection. Indorse it properly and make the necessary record in the Date Sent to Collect column of the bill book. JULY 3 J. E. Bender, Troy, has agreed to honor your sight draft, in favor of Stoddard & Co., for $300. Write the draft and the letters and hand them in. Make the proper entry in the journal. The Metropolitan Carting Co. has just delivered to you the goods ordered of Cobb, Bates & Co. on July 1. Look up the invoice, Form 4. Enter it in the invoice book. (See illustration, page 142.) |