Question 7.4.1: If an invoice from Oster is dated June 10 with terms of 3 / ......

Business Mathematics [1175844]

If an invoice from Oster is dated June 10 with terms of 3 / 20 EOM, find (a) the final date on which the cash discount may be taken and (b) the net payment date.

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(a) The discount date is July 20 (20 days after the end of June).

(b) When no net payment due date is given, common business practice is to allow 20 days after the last discount date. The net payment date is August 9, which is 20 days after the last discount date (July 20), since no net payment date is given.

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