Problema Solution
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 provided by our tutors
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.