Charles Smith, Inc., is a manufacturer of small office equipment.

Smith transacts most of its business on credit and offers its customers credit terms of 2/10, n/30. On July 1, Smith shipped an order valued at \($120,000\) to a customer and shipped a second order valued at \($80,000\) to another customer on July 10. Payment was received on the July Ist order on July 6, but payment on the July 10th order was not received until August 15. Calculate total sales, the sales discount, and net sales for Charles Smith, Inc., for July. Why do companies like Smith, Inc., offer sales discounts to their customers? Why are sales discounts valuable to the customers of Smith, Inc.?