An invoice for $5010 dated February 26th, covering merchandise received by the retailer from the manufacturer...

An invoice for $5010 dated February 26th, covering merchandise received by the retailer from the manufacturer March 19th, carries terms of 7/10 EOM, ROG, FOB retailer. The manufacturer paid the trucking company $172 to transport the merchandise. If the retailer pays the manufacturer on April 12, how much should be remitted?

A buyer purchased 88 lamps at a list price of $264.96 each. The trade discounts were 36%, 23%, and 9% with terms of 1/10, n/30. The books were shipped and billed on August 18 and were received August 22. The buyer paid the bill on August 30. What amount did the buyer pay?

An invoice for $5010 dated February 26th, covering merchandise received by the retailer from the manufacturer March 19th, carries terms of 7/10 EOM, ROG. If the retailer pays the manufacturer on April 12, how much should be remitted?

Merchandise that amounts to $462896 at cost is invoiced and shipped from the vendor to the retailer on June 12. Terms are 3/10 EOM, FOB vendor. The shipping company charged $2169 to transport the merchandise from the vendor to the retailer. The vendor paid the transportation charge. If payment is made by the retailer to the vendor on June 29, how much should the retailer remit?

Solutions

Expert Solution

ROG means - Receipt of goods i.e the due date start from the Date the goods are receipt

7/10 EOM Payment terms means payment is due End of following month in which goods are inoviced/received and a discount of 7% will provided if the payment is made in the first 10 days of the following month.

FOB meant Free on Board i.e. the price are incliding freight.

In the given case

Goods invoice on 26th February

Good Received on 19th March

Payment made on 12th April

Invoice value - $ 5010

Transport charge paid by MAnufacture - $ 172

Based on above parameter

Invoice due for payment is April 30th (EOM following the month good received)

Discount of 7% if the invocie is paid within first 10 days of the following month so a Last date for getting discount will be 10th April.

Since the payment are made on 12th April which after the date for discount there will be no discount and as per payment term of FOB the invoice is inclusive of freight, hence the retailer will required to remit invoice value of $,5010.

jeff jeffy answered 1 year ago

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