A director of accounts received an invoice for $614.52, dated November 12, with sales terms 4 / 13 ROG. The merchandise described on the invoice was received December 10. Find the cash discount and net amount paid if the invoice was paid January 10.

Question

Quizplus · Accepted Answer

The terms 4 / 13 ROG mean that a 4% discount is available if the invoice is paid within 13 days after the receipt of goods. Since the goods were received on December 10 and the invoice was paid on January 10, the payment was made well beyond the 13-day discount period. Therefore, no cash discount applies, and the full invoice amount of $614.52 is due.

A Director of Accounts Received an Invoice for $614