Answer:
last date of discount period =June 15
cash discount = $215.73
bill or amount = $1402.27
last credit date = July 5
Step-by-step explanation:
A company received an invoice for$1618 dated may 11,terms 2/15 EOM what is the last date of the discount period and last date of credit period answer with formula
a A 2/15 EOM or ending of the month means the buyer receives a cash discount if the amount or bill is paid within a period of 15 days after the end of the month indicated May 11
EOM RESULT in the end of the discount period June 15
Total discount = 2/15 *$1618 = $215.73
Amount or bill to be paid = $1618 - $215.73 = $1402.27 on JUNE 15
last date of credit period the credit period is the period or time the buyer is given to pay the seller That is 20 days after the end of the cash discount period so the credit period last date is JULY 5
