Subjects finance

Cash Discounts Eom 15F0Fb

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1. **State the problem:** You purchased office supplies worth 700 and received a bill dated 15-Sep with terms 3/10 EOM. 2. **Understand the terms:** 3/10 EOM means a 3% discount is available if payment is made within 10 days after the end of the month of the invoice date. 3. **Calculate the discount:** $$\text{Discount} = 700 \times \frac{3}{100} = 21$$ 4. **Calculate the amount to be paid with discount:** $$\text{Amount with discount} = 700 - 21 = 679$$ 5. **Determine the discount due date:** The invoice date is 15-Sep, so the end of the month (EOM) is 30-Sep. Adding 10 days to 30-Sep gives the discount due date as 10-Oct. **Final answers:** - Bill Amount with Discount = 679 - Discount Due Date (Day - Month) = 10 - Oct