Final answer:
The percent of the cash discount being offered is 5%.
Step-by-step explanation:
The terms 5/10 EOM mean that the customer is eligible for a cash discount of 5% if the invoice is paid within 10 days from the end of the month. In this case, the invoice date is August 1st, so the end of the month is August 31st. To calculate the number of days allowed for the cash discount, we subtract 10 days from August 31st, which gives us August 21st. Therefore, the cash discount is valid until August 21st and the percent of the cash discount being offered is 5%.