What should you do and how much should you pay Smith Outdoors?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On September 10th Green Company orders $5000 in equipment from Smith Outdoors where they receive a 6/4 chain discount. The Green Company clerk received the shipment from Smith Outdoors with an invoice on September 20. The Net price on the invoice was $4,607.50 (freight not included). Terms were 2/10, n/30, ROG. Freight charges were $200 and are Green’s responsibility but were prepaid by Smith Outdoors.
You are the clerk in charge of paying the bills at the Green Company. You are going to pay the bill before the 30th. What should you do and how much should you pay Smith Outdoors?
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