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?
Do not abbreviate the name of the month.
Answer provided by our tutors
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.