Custom has made some rules which are now considered absolute by the best business houses. On general monthly credit accounts, all goods bought during the month are due on the first day of the month following and may be paid any time between the first and the tenth. Goods sold for cash should be paid for at once or within ten days from the date of sale.

If a discount is allowed for cash that discount can be claimed and is usually allowed if payment is made within 10 days. Goods bought on March 3 at 30 days would be due April 3 plus 10 days, or April 13. That is to say, if a discount were allowed for payment within 30 days the discount could be claimed if payment were not made until April 13.

It is a common custom to date sales ahead, to the first of the next month, or sometimes two or three months ahead. The dates of drafts then conform to the general custom of credits.

Collections Through Banks. If you desire to have your bills receivable and commercial drafts collected through a bank, you should place them with the bank at least fifteen days before maturity. About ten days before maturity the bank will send to the maker a formal notice stating that they hold a note against him, giving the amount and date of maturity, and asking him to call and pay it.

When a note is left at a bank for collection, it should be indorsed "Collected for account of---------------." By this indorsement the note is not transferred to the bank. The bank is simply authorized to collect the amount.