Problema Solution
Kariem Salaam is directing the accts payable office and is training a new accts payable associate. They are processing an invoice for a credenza that is dated August 19 in the amount of $392.34. The delivery ticket for the credenza is dated Aug 23. If the sales terms indicated on the invoice are 3/9 ROG, how much needs to be paid if the bill is paid on September 5?
Answer provided by our tutors
ROG stands for receipt of goods.
The terms 3/9 ROG mean that a 3% discount is allowed on the bill if it is paid within 9 days of the receipt of goods, in our case Aug 23 is the day of the receipt of goods.
September 5 is not within 9 days of Aug 23 thus $392.34 needs to be paid.