Ray's New Higher Arithmetic · Arts. 330–332 · Unit 21: Percentage with Time: Equation of Payments and Settlement of Accounts

95. Account sales and storage accounts optional

Goal: Your student reads an agent's account of sales and figures storage charges by the barrel-month.

⏱ About 35 minutes · 6 steps

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You'll need

  • The book
  • A slate, small whiteboard or scrap paper
  • A notebook and pencil

What's in the book

Account sales (definition, guaranty, storage, how to average), a worked consignment (Charles Maynard), an account to make out, storage accounts, and examples. Answers are printed. The chapter's topical outline follows a few pages later.

The lesson, step by step

  1. Warm-up

    Ask: If an agent sells your wheat for you, what would you want to see on paper afterwards?

  2. The idea

    Read:

    An Account Sales is a written statement made by an agent or consignee to his employer or consignor, of the quantity and price of goods sold, the charges, and the net proceeds.

    Guaranty is a charge made to secure the owner against loss when the goods are sold on credit.

    Storage is a charge made for keeping goods, and is usually reckoned by the week or month on each piece or article.

  3. Look at the book's example

    Read through Charles Maynard's consignment. The sales are on one side, the charges (freight, storage, insurance, commission) on the other. The net proceeds are the difference, $7910.09, due Sept. 4, 1876.

  4. Storage accounts

    Read:

    Storage Accounts are similar to bank accounts, one side showing how many barrels, packages, etc., are received, and at what times; the other side showing how many have been delivered, and at what times.

    Storage is generally charged at so much per month of 30 days on each barrel, package, etc.

    SayMultiply the barrels on hand by the days they stayed, add the products, and divide by 30. That gives barrel-months.

  5. Practice

    Your student works the first storage example:

    Storage to Jan. 31, at 5 ct. a bbl. per month.

    Keep a running balance of barrels on hand.

  6. Check and wrap-up

    Check the printed answers. Ask: Why did merchants care so much about storage? (Goods sitting in a warehouse cost money every month.)

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