Question

Find the amount due on an invoice of ​$1771.40 with terms of 5/15 ROG. The invoice is dated 6/9​, the goods are received 7/2​, and the invoice is paid on 7/13

What is the amount due on the invoice?

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Answer 1

Gross amount = $1,771.40

Terms = 5/15 ROG ( Receipt of goods) it means that if the payment is made within 15 days from the receipt of goods then the buyer will get an additional discount of 5% on the amount.

Receipt of goods = 7/2

And payment is made on = 7/13

As the payment is made in 11 days therefore the buyer will be eligible for the discount.

Therefore amount due on invoice will be

= 1,771.40 - 5%*1,771.40

= $1,682.83

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