Question

On August 18, Sullivan Company received an invoice in the amount of $6,700, having terms of sale of 4/15 EOM. What is the discount date

Answer 1

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4/15 EOM this means the buyer will receive a cash discount of 15% if the bill is paid within 4 days after the end of the month indicated on the invoice date. If the invoice date is August 18 the discount date is September 4th:) Thanks for joining OS and good luck on OS. If you need any help of have any trouble, just let me know:) I'll be more than glad to help you out:)!!

Answer 2

thanks but that wasnt right

Answer 3

Whoops, I'm so sorry! I got mixed with a different question.
4/15 EOM - this means the buyer will receive a cash discount of 4% if the bill is paid within 15 days after the end of the month indicated on the invoice date.
If an invoice is received on or before the 25th day of the month (August 18), payment is due on the 15th day of the next calendar month. Thus the discount date is 15 of September:) Sorry again. I apologize.

Answer 4

thats ok thank you that one was right

Answer 5

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Answer 6

I am not good at math at all so what about this one:
What payment should be made on an invoice in the amount of $3,400 dated August 7 if the terms of sale are 3/15, 2/30, n/45 and the bill is paid on ...
a. ... August 19?
$
b. ... September 3?

Answer 7

3/15 means a 3% discount if paid in 15 days.

2/30 means a 2% discount if paid in 30 days.

n/45 is your limit for DEMAND for payment. This "n" does NOT mean the same as the 3 or 2 in the previous two items:)