Question

An invoice dated March 28 with terms 1/10, E.O.M. results in the end of the credit period on:

Answer 1

May 30th.
Since the date is past the 25th day of the month so buyers get another month for the cash discount. The cash discount ends on the 10th day of the SECOND month so the credit period will be 20 days after the discount period.

Answer 2

Answer:

April 10

Step-by-step explanation:

EOM (End Of Month) to receive a discount attached to the invoice when paying before the payment is due.

In this case, 1/10 means that there will be a 1% discount if the invoice is paid within 10 days of receipt.

But since the terms of credit are EOM, the 10 days are counted from the end of March, that brings us to April 10.

Therefore, an invoice dated March 28 with terms 1/10, E.O.M. results at the end of the credit period on April 10.

Hope this helps!