Kariem Salaam is directing the accounts payable office and is training a new accounts payable associate. They are processing an invoice for a credenza that is dated August 19 in the amount of ​$392.34. The delivery ticket for the credenza is dated August 23. If the sales terms indicated on the invoice are 4​/9 ​ROG, how much needs to be paid if the bill is paid on September 8​?


To solve this problem, we need to interpret the payment terms and apply them to the given dates. The terms on the invoice are **4/9 ROG**, which means that there is a **4% discount** if payment is made within **9 days** from the **receipt of goods (ROG)**.

Let's break it down:

1. **Invoice Date**: August 19
2. **Delivery Date (ROG)**: August 23
3. **Payment Date**: September 8
4. **Terms**: 4% discount if paid within 9 days of receiving the goods (ROG).

### Step 1: Calculate the discount period
The discount period is 9 days from the delivery date (August 23). So, we add 9 days to the delivery date:

- August 23 + 9 days = **September 1**.

This means that the buyer must pay by **September 1** to get the 4% discount.

### Step 2: Determine if the discount applies
Since the bill is being paid on **September 8**, the payment is **after the discount period**, so the discount **does not apply**.

### Step 3: Amount to be paid
Since the payment is after the discount period, the full invoice amount needs to be paid:

- **Amount to be paid = $392.34**.

### Final Answer:
Kariem Salaam and the accounts payable associate will need to pay the **full amount of $392.34** since the bill is being paid after the discount period.

Would you like to explore more details or clarify anything?

Here are 5 follow-up questions to deepen understanding:
1. What does the term "ROG" mean in the context of payment terms?
2. How would the calculation change if the payment was made on September 1?
3. What other common payment terms might you encounter in accounts payable?
4. How do cash discounts affect a company’s cash flow and financial health?
5. What steps should be taken to ensure invoices are paid on time to take advantage of discounts?

**Tip**: Always keep track of delivery and invoice dates to maximize savings through early payment discounts!

Kariem Salaam is directing the accounts payable office and is training a new accounts payable associate. They are processing an invoice for a credenza that is dated August 19 in the amount of $392.34. The delivery ticket for the credenza is dated August 23. If the sales terms indicated on the invoice are 4/9 ROG, how much needs to be paid if the bill is paid on September 8?

Learn how to calculate payment terms with a 4/9 ROG discount in accounts payable. This detailed solution walks through how Kariem Salaam processes a $392.34 invoice and whether a 4% discount applies when the bill is paid on September 8. Perfect for high school students studying financial math or business.

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