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? and As a bookkeeper for empire, how will you send to Mohawk?
To determine the date by which Empire must pay the invoice, we need to take into account the terms of sale and the arrival date of the shipment.
The terms of sale state "2/10, n30 ROG." This means that Empire can take a 2% cash discount if they pay within 10 days from the receipt of goods (ROG), alternatively, they can pay the full amount within 30 days from the receipt of goods.
The shipment arrives on May 26. To calculate the payment due date, we need to add the number of days allowed for payment to the arrival date.
If Empire wants to take advantage of the cash discount, they need to pay within 10 days from the receipt of goods. Therefore, the payment due date would be May 26 + 10 days = June 5th.
As a bookkeeper for Empire, to send the payment to Mohawk, you would typically issue a check and mail it to Mohawk Carpet Mills. Ensure you include all relevant information such as the invoice number, account number, and any necessary payment details (such as check total and payment reference). You may also choose to communicate with Mohawk through email or phone to confirm the payment and provide any additional information they may require.