Discounts #8
Receipt of Goods (ROG)
Name:
Some businesses don’t require payment until after the goods are actually received by the purchaser. If the terms read
“3/10 n/30 ROG” then the purchaser gets the 3% discount if they pay within 10 days of receiving the shipment.
For example:
If the invoice is dated Oct. 5, the merchandise arrives on Dec. 8 and the terms are 2/10 n/30 ROG
then you get a 3% discount off of the net price if you pay by Dec. 8 + 10 (Dec. 18).
…………………………………………………………………………………………………………………….
1. ROG stands for ______________________________
2. Your store receives an invoice dated June 12 for $560.38 with the terms 2/15 n/30 ROG. You receive the goods
on August 16.
a) What is the last day you can receive the discount?
b) What is the cash price you pay?
3. The invoice for $2390.75 has the terms 4/10, n/60 ROG. You receive the shipment on May 12. Find the
amount you pay if you …
a) pay the invoice on May 18
b) pay the invoice on May 31
4. Your business receives this invoice:
Invoice
Date
Customer
Jan 16
Store
Clerk
342598
No. 109
Amount
a) Fill in the amounts and the total.
30
Item
Qty
Price
A13-245P
1
$12.59
_______
c) What is the net price?
V43-229R
3
$15.99
_______
d) What is the cash price?
A22-194M
10
$
_______
Terms: 4/10 EOM
3.90
Total ________
b) What is the last day to get the cash discount?
(day 8)
5. You get an invoice dated March 14 and the merchandise arrives on May 7. Find the last day you can get the
discount if the terms read:
a) 2/10 n/30
b) 2/10 n/30 EOM
c) 2/10 n/30 ROG
6. Complete the following:
Terms
Last day of
discount period
Final day bill is due
(end of credit period)
a) June 18
1/10, n/30
__________
__________
b) Nov. 27
2/10 EOM
__________
__________
3/10, n/30, ROG
__________
__________
d) April 10
1/30, n/60
__________
__________
e) June 12
3/10 EOM
__________
__________
4/10, n/30/ROG
__________
__________
Invoice
c) May 15
f) Jan. 10
Dates when
goods received
June 5
Feb. 3*
*not leap year
7. Round to the nearest tenth of a percent: list price $6309.13, net price $5552.03. Find the:
a) trade discount amount
b) trade discount rate
8. Round 37.346% to the nearest hundredth of a percent
9. The chain discount is 15/10/2 and the list price is $85.95. Find:
a) the net cost equivalent
b) the single discount equivalent
c) the net price
10. Use the complement of the cash discount to calculate the net amount paid. Assume all invoices are paid
within the discount period.
Terms of invoice
Amount of invoice
Complement
Net amount paid
a) 2/10, n/30
$1,125
__________
__________
b) 3/10, n/30 ROG
$4,500
__________
__________
c) 2/10 EOM
$375.50
__________
__________
d) 1/15, n/45
$3,998
__________
__________
11. Staples purchased seven new computers listed at $850 each. It received a 15% discount because it
purchased more than five and an additional 6% discount because it took immediate delivery. Terms of payment
were 2/10, n/30. Staples pays the bill within the cash discount period. How much should the check be? Round to
the nearest cent.
12. Date of invoice: Sept. 6 Terms: 2/10 EOM
a) Last day of discount period?
b) Final day bill is due?
13. The list price of a silver picture frame is $29.95, and the trade discount is 15%. Find:
a) the trade discount amount
b) the net price
14. Date of invoice.: Feb.8 Goods received: Aug. 12 Terms: 4/10 n/30 ROG
a)Last day of discount period?
b) Final day bill is due?