An invoice in the amount of $290.00 with credit terms of 3 / 10, EOM is dated April 27. If it is paid June 9, the amount due is $281.30.

Question

Quizplus · Accepted Answer

The credit terms of 3/10, EOM means that if the invoice is paid within 10 days of the end of the month (April), a 3% discount can be taken.

If the invoice is not paid within the discount period, the full amount is due.

June 9 is past the discount period, so the full amount of $290.00 is due.

Therefore, the statement "the amount due is $281.30" is false.

An Invoice in the Amount of $290