jones company received an invoice for $1,450 dated august 28, terms 2/10 eom. (a) what is the last date of…

jones company received an invoice for $1,450 dated august 28, terms 2/10 eom. (a) what is the last date of the discount and credit periods? (b) if paid on october 3, how much would jones pay? note: round your answer to 2 decimal places.

jones company received an invoice for $1,450 dated august 28, terms 2/10 eom. (a) what is the last date of the discount and credit periods? (b) if paid on october 3, how much would jones pay? note: round your answer to 2 decimal places.

Answer

Explanation:

Step1: Understand EOM terms

The terms 2/10 EOM mean a 2% discount if paid within 10 days after the end - of - month. The invoice is dated August 28.

Step2: Calculate discount period end - date

The end of August is August 31. Ten days after August 31 is September 10. So the last date of the discount period is September 10.

Step3: Calculate credit period end - date

Typically, the credit period for EOM terms is 30 days after the end of the discount period. So the last date of the credit period is October 10.

Step4: Determine payment amount on October 3

Since October 3 is after the discount period (ended on September 10), Jones will pay the full invoice amount.

Answer:

(A) Discount period: September 10 Credit period: October 10 (B) Jones paid: $1450.00