A man received an invoice for a leaf blower for $478 dated April 17 with sales terms of 4/10 EOM. How much should he pay if he pays the bill on April 29?
is it - 478-(478*4/100)= $458.88
To calculate the amount the man should pay if he pays the bill on April 29, we need to consider the sales terms of 4/10 EOM.
The term 4/10 EOM means that the buyer can take a 4% discount if they pay the bill within 10 days of the end of the month in which the invoice was issued. In this case, since the invoice is dated April 17, we need to determine the end of the month.
To find the end of the month, we add one month to the invoice date. Therefore, the end of the month for the April 17 invoice is May 17.
Since April 29 falls within the 10-day discount period (April 17 to May 17), the man can take a 4% discount on the total amount. Thus, the amount he should pay is:
$478 - ($478 * 4%) = $478 - ($478 * 0.04) = $478 - $19.12 = $458.88.
Therefore, the correct amount the man should pay if he pays the bill on April 29 is $458.88.
To calculate the amount the man should pay if he pays the bill on April 29, we need to understand the sales terms mentioned on the invoice. "4/10 EOM" means that the customer is entitled to a discount of 4% if the payment is made within 10 days from the end of the month in which the invoice is dated.
In this case, the invoice is dated April 17, so we count 10 days from the end of April. This brings us to April 30. Since April only has 30 days, the EOM (end of month) will also be April 30.
To calculate the payment amount with the discount, we can subtract the discount from the invoice total.
Discount = $478 * 4/100 = $19.12
Payment amount = Invoice total - Discount = $478 - $19.12 = $458.88
Therefore, if the man pays the bill on April 29, he should pay $458.88.