Problema Solution
Finney & Company purchased $1,800 of merchandise on 5/6. The terms were 2/15 EOM. The sneakers were received on 5/20, sent FOB Shipping Point. Freight charges amounted to $45.
a. What is the discount date?
Answer provided by our tutors
2/15 EOM - this means the buyer will receive a cash discount of 2% 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, payment is due on the 15th day of the next calendar month.
If a proper invoice is received after the 25th day of the month, payment is due on the 15th day of the second calendar month.
The discount date s 6/15.