Question

The net price of goods from Southern Flooring to Jerry’s Carpet Outlet is $34,500. The terms are 8/10 EOM. The date of the invoice is October 5th. If the invoice is paid on October 15, what is the cash price?

Answer 1

Can you clue me into what 8/10 means? I know EOM is end of month. Does that mean 80% off?

Answer 2

the 8 means Percent of cash discount.
the 10 means Discount available within
this many days of date
invoice is issued.

Answer 3

O, the price is 8% off because the due amount was paid within the 10 day period.

34,500 - (34,500 * 0.08) = $31,740

Answer 4

thank you.