An invoice is dated August 29 with terms of 4/15 EOM. What is the discount date?
To determine the discount date for an invoice with terms of 4/15 EOM, we need to break down the terms:
1. "4/15" means that the invoice is due within 15 days, but a discount is available if paid within 4 days.
2. "EOM" stands for "end of the month," so the discount period ends at the end of the current month.
To calculate the discount date, follow these steps:
1. Start by looking at the invoice date, which is August 29.
2. Add 4 days to the invoice date. In this case: August 29 + 4 days = September 2.
3. Next, check if the discount period ends at the "end of the month" (EOM). In this case, the current month is August, so the discount period ends on August 31.
4. Since September 2 is after August 31, we need to move to the next month to find the discount date.
5. Add the remaining days from the discount period to the first day of the next month. In this case, 15 - 4 = 11. Therefore, the discount date would be September 11.
To summarize, the discount date for this invoice with terms of 4/15 EOM and an invoice date of August 29 would be September 11.