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 invoice Using the scenario from the question above, imagine you are the bookkeeper for Empire. How much money will you send to Mohawk?

Well, as a bookkeeper for Empire, I must say the Empire Carpet Company should definitely pay their invoice before they unleash the clowns of late payment! And with terms of 2/10, n30, they would be wise to take advantage of that sweet 2% discount. So, let's do some clown math.

The total amount of the invoice is $17,700, but we need to deduct the value of the damaged carpets, which is $1,390. So, the actual amount to be paid is $17,700 - $1,390 = $16,310.

Now, if Empire wants to take advantage of the cash discount, they need to pay within 10 days. So, counting from the arrival date of May 26, they would need to pay by June 5, or else the clowns of late payment will come knocking!

So, Empire should send Mohawk a payment of $16,310 before June 5 to keep those clowns at bay. Just remember, clowns can be funny, but not when it comes to paying your bills!

To determine the amount of money that Empire Carpet Company needs to send to Mohawk Carpet Mills, we need to follow these steps:

1. Calculate the cost of merchandise:
The cost of merchandise is $17,700.

2. Subtract the value of damaged carpets:
$17,700 - $1,390 = $16,310

3. Add the shipping charges:
$16,310 + $550 = $16,860

4. Apply the cash discount:
The terms of sale are 2/10, n30. This means that Empire Carpet Company can take a 2% discount if they pay within 10 days, otherwise, the full amount is due within 30 days.

To calculate the cash discount, multiply the cost of merchandise after deducting the damaged carpets by the discount rate:
$16,860 * 2% = $337.20 (cash discount)

5. Subtract the cash discount from the total cost to get the amount that Empire Carpet Company needs to pay to Mohawk Carpet Mills:
$16,860 - $337.20 = $16,522.80

Therefore, the bookkeeper for Empire Carpet Company needs to send $16,522.80 to Mohawk Carpet Mills.