An invoice is dated August 29 with terms of 4/15 EOM. What is the discount date? (Points : 2.5)
12. What is the net date for the scenario in the previous question? (Points : 2.5)
The answer to the first question is 10/15.
Unsure of the second
teert
To determine the discount date and the net date for an invoice with terms of 4/15 EOM, we need to understand what these terms mean:
- "4/15" means that if the invoice is paid within 4 days, a discount will be given.
- "EOM" stands for "end of month," meaning that the payment due date is calculated at the end of the month in which the invoice was issued.
Now, let's calculate the discount date and the net date:
1. Calculate the due date:
Since the invoice is dated August 29, the payment due date will be 15 days from the end of the same month. Therefore, the due date is September 15.
2. Calculate the discount date:
To find the discount date, subtract the number of days given for the discount from the due date. In this case, the discount is given for 4 days, so we subtract 4 days from September 15. That gives us September 11. Therefore, the discount date is September 11.
3. Calculate the net date:
The net date refers to the last day by which the invoice must be paid in full, without any discount. In this scenario, the net date is the same as the due date, which is September 15.
So, the discount date for the invoice is September 11, and the net date is September 15.