Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
-Invoice date: Aug 20
Terms: EOM
A)Discount date: Sept 27; net payment date: Oct 17
B)Discount date: Sept 27; net payment date: Oct 27
C)Discount date: Sept 20; net payment date: Oct 10
D)Discount date: Sept 19; net payment date: Oct 9

Question

Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
-Invoice date: Aug 20
Terms:  EOM
A)Discount date: Sept 27; net payment date: Oct 17 
B)Discount date: Sept 27; net payment date: Oct 27 
C)Discount date: Sept 20; net payment date: Oct 10 
D)Discount date: Sept 19; net payment date: Oct 9

Quizplus · Accepted Answer

EOM means end of month, so the due date is the last day of the following month, which is Sept 30. The discount terms are notated as X/Y, where X is the percentage discount and Y is the number of days to take the discount. In this case, there is no X specified, so we assume it is 0%. 
The discount date would be 20 days from the invoice date, which is Sept 9. However, since there is no discount specified, we can ignore this. 
The net payment date is 20 days after the final discount date, so it would be Oct 17, which is the best match from the given choices. EOM stands for "end of month," so the payment is due on the last day of the following month after the invoice date. Therefore, the payment is due on September 30. The discount date is usually 10 days from the due date, which would be September 10. However, since September only has 30 days, we have to move it forward to the last business day, which is September 27. The net payment date is 20 days after the discount date, which would be October 17. Therefore, the correct answer is A.

Find the Discount Date and Net Payment Date