An invoice dated March 6 with terms of 1/10, EOM results in the end of the discount period on
A. May 30.
B. April 10.
C. April 30.
D. May 31 An
My answer is B
april 10
To determine the end of the discount period on an invoice with terms of 1/10, EOM (End of Month), you need to follow these steps:
1. Identify the invoice date. In this case, the invoice date is March 6.
2. Determine the discount percentage. The terms state 1/10, which means there is a 1% discount available if the payment is made within the discount period.
3. Determine the discount period. Since the terms include EOM (End of Month), the discount period is until the end of the month in which the invoice is issued.
Now, let's calculate the end of the discount period:
1. The invoice date is March 6.
2. The discount period starts from the invoice date until the end of the month, which is March 31.
3. Add 10 days to the end of the discount period to account for the 1/10 discount terms.
- March 31 + 10 days = April 10.
So, based on the calculation, the end of the discount period for the invoice dated March 6 with terms of 1/10, EOM is April 10. Therefore, your answer (B) is correct.
The correct answer is D. May 31.
The term "EOM" stands for "end of month." With terms of 1/10, EOM, it means that a 1% discount is offered if payment is made within 10 days from the end of the month.
In this case, the invoice was dated March 6, so the end of the discount period would be 10 days from the end of the following month, April 30. Therefore, the end of the discount period is May 31 (since April has 30 days). Hence, option D is the correct answer.