Answered: 10. You purchase goods on an invoice…

10. You purchase goods on an invoice dated July 27 with terms of 3/10 EOM. Determine (a) the last day of the discount period, and (b) the last day of the credit period.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2Q

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Question

BUS 038 : Business Computations
10. You purchase goods on an invoice dated July 27 with terms of 3/10 EOM. Determine (a) the last day
of the discount period, and (b) the last day of the credit period.

11. You purchase goods on an invoice dated February 5 of a leap year, with terms of 5/10-90X. Calculate
the last day of the discount period. The discount period ends 100 days (10 + 90 = 100) after the date of
the invoice. February 5 is day 36.

12. For terms of 6/10, n/30, what annual rate do you pay the supplier if you fail to pay the invoice at the
end of the discount period?

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