Problema Solution
The Empire Carpet Company orders merchandise for $17,700, including $550 in shipping charges, from Mohawk Carpet Mills on May 4. Carpets valued at $1,390 will be returned because they are damaged. The terms of sale are 2/10, n30 ROG. The shipment arrives on May 26 and Empire wants to take advantage of the cash discount. By what date must Empire pay the invoice?
Answer provided by our tutors
The shipment arrives on May 26.
According to 2/10, n30 ROG the invoice must be paid within 30 days. But in order to avail cash discount, invoice must be paid within 10 dats i.e. 5 may and cash discount is 2%.