Question

The invoice date is November 15. The terms are 4.5/10 EOM. What is the discount rate and the last day to pay in full?

A. 4.5%; November 25

B. 4.5%; December 30

C. 4%; December 25

D. 4.5%; December 20

Answer 1

A. 4.5%; November 25

Explanation:

4.5/10 EOM is a type of payment term you will see on an invoice. The 4.5 stands for discount percentage and the 10 is a number of days. 4.5/10 means the payment on the invoice is due in 10 days. EOM stands for end of the month. So if the amount is paid within 10 days, the customer gets a discount of 4.5%. Which means the last day to pay in full is November 25. After that there is no discount.