Finney & Company purchased $1,800 of merchandise on 5/6. The terms were 2/15 EOM. The sneakers were received on 5/20, sent FOB Shipping Point. Freight charges amounted to $45.

a. What is the discount date?
b. What payment must be made by that date to take advantage of the discount?

a. 6/4

b. $36

To determine the discount date and the payment needed to take advantage of the discount, you need to understand the given terms and dates.

The terms "2/15 EOM" mean that the buyer is eligible for a 2% discount if payment is made within 15 days of the end of the month (EOM) in which the purchase was made. In this case, the purchase was made on 5/6.

To find the discount date, follow these steps:

Step 1: Determine the end of the month (EOM) following the purchase month.
Since the purchase was made in May, the EOM would be the end of May.

Step 2: Subtract 15 days from the end of the month.
15 days before the end of May would be May 16th.

Therefore, the discount date for this purchase would be May 16th.

To calculate the payment needed to take advantage of the discount, follow these steps:

Step 1: Determine the total amount of the purchase.
The total purchase amount is given as $1,800.

Step 2: Multiply the total purchase amount by the discount rate.
In this case, the discount rate is 2% or 0.02.
$1,800 * 0.02 = $36.

Therefore, to take advantage of the discount, Finney & Company must make a payment of $36 by the discount date, which is May 16th.