An invoice received from Royal Exporters totaled $638.20, was dated October 10, and offered terms of 1 / 11 ROG. The shipment was received November 27. If the invoice was paid on December 12, find the net amount due.

Question

Quizplus · Accepted Answer

The terms 1 / 11 ROG mean that a 1% discount is available if the invoice is paid within 11 days after the receipt of goods. Since the goods were received on November 27 and the invoice was paid on December 12, the payment was made outside the discount period. Therefore, the full invoice amount of $638.20 is due.

An Invoice Received from Royal Exporters Totaled $638