Accounting 25th Edition by Carl Warren, James Reeve, Jonathan Duchac

Exercise 1

Ethics and professional conduct in business
On April 18, 2014, Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2014.
Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount, even though the discount period had expired.