Subjects finance

Cash Discount Eom D75991

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1. **State the problem:** You purchased office supplies worth 600 and received a bill dated 18-Sept with terms 5/10 EOM. 2. **Understand the terms:** 5/10 EOM means a 5% discount is available if payment is made within 10 days after the end of the month of the invoice date. 3. **Calculate the discount:** The invoice date is 18-Sept, so the end of the month (EOM) is 30-Sept. Discount period = 10 days after 30-Sept, so discount due date is 10-Oct. Discount amount = 5% of 600 = $600 \times 0.05 = 30$ 4. **Calculate the amount to be paid with discount:** $$\text{Amount with discount} = 600 - 30 = 570$$ 5. **Answer:** Bill Amount with Discount = 570 Discount Due Date (Day − Month) = 10 − Oct