Question

A company received an invoice for $1618 dated may 11, terms 2/15 EOM

Answer 1

Given :

A company received an invoice for $1618 dated may 11, terms 2/15 EOM

Solution :

A company received an invoice for $1618 dated May 11, terms 2/15 EOM, which means 2% of discount can be availed on total amount if paid within 15 days from the issue date of invoice.

The date of invoice is 11th May so the last date of qualifying the 2% discount will be 26th May.

EOM indicates End Of the Month,

If not paid till 26th May, it will be paid full amount 15 days after EOM.

15 days after EOM (31st May) i.e. 15th June.

Therefore, Last date of availing discount of 2% = 26th May

Last date of credit period = 15th June