Question

Get-down electronics buys mp3 players with an invoice date of june 29, and terms of sale of 4/20 eom. Calculate the discount date.

Answer 1

August 20.

Explanation:

1. The problem says that the invoice date is June 29 and terms of sale of
`(4)/(20)` EOM. This means that if the payment is made 20 days from the end of the month, a percent of 4% may be taken as cash discount.

2. If the number of days in that month is greater than 25, you must add another month. Therefore, you must add July and 20 days of August.

3. Therefore, the discount date is August 20.