An invoice is dated August 29 with terms of 4/15 EOM. What is the discount date? (Points
What is the net date for the scenario in the previous question? (Points : 2.5)
An invoice is dated Aug 29 with terms of 4/15 E.O.M. What is the discount date and net date ?
To determine the discount date, we need to understand the terms "4/15 EOM."
"4/15" refers to a discount percentage and a number of days. In this case, it means that a 4% discount is available if the invoice is paid within 15 days.
"EOM" stands for "End of Month." So, the due date for the invoice is the end of the following month after the invoice date.
To calculate the discount date:
1. Start with the invoice date: August 29.
2. Add the number of days from the terms: 15 days.
3. This brings us to September 13.
4. Since the due date is the end of the following month, we need to move to the next month: October.
5. The discount date will be October 31.
Now, let's calculate the net date, which is the date the payment is due without any discount.
1. Start with the invoice date: August 29.
2. Add the number of days from the terms: 15 days.
3. This brings us to September 13.
Therefore, the net date for this scenario is September 13.