Question 1161910: An invoice was received for $6,200 dated June 21 with terms 2/10, EOM. What is the amount due if the invoice is paid on July 4th? (1 point)
Question 13 options:
$6,076
$6,200
$5,580
$4,960
Found 2 solutions by Theo, MathTherapy:
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! the terms are 2/10, EOM.
i believe this means a 2% discount if the invoice is paid within 10 days, otherwise the full cost is due by the end of the month following the month that the invoice was issued.
based on that understanding, if the invoice is paid by july 1, the customer gets a 2% discount.
the number of days are assumed to be by calendar days and not working days.
since the invoice was not paid by july 1, then the full cost is applied.
that would be $6,200.
the references i searched for on the web are very confusing and contradictory.
some EOM designations say by the end of the month means by the end of the month that the invoice was issued in.
other EOM designations say by the end of the following month.
in this case, i would assume the EOM designation has to mean by the end of the following month because the discount period carries pas the end of the month that the invoice was issued in.
either way, i think your answer should be the full price of $6,200 is due.
Answer by MathTherapy(10552)  (Show Source):
You can put this solution on YOUR website! An invoice was received for $6,200 dated June 21 with terms 2/10, EOM. What is the amount due if the invoice is paid on July 4th? (1 point)
Question 13 options:
$6,076
$6,200
$5,580
$4,960
 .
Invoice wasn't paid in 10 days after its June 21 date, so discount DOESN'T apply!
|
|
|
