Select the earliest date below which does not deserve a cash discount if the terms of a January 1 sale are 2/10, EOM, net 60?
A)January 2
B)January 12
C)February 2
D)February 12

Question

Quizplus · Accepted Answer

The terms 2/10, EOM, net 60 mean a 2% discount is available if the invoice is paid within 10 days after the end of the month of sale (January), with the full payment due 60 days after the end of the month. Therefore, the discount period ends on February 10, making February 12 the earliest date that does not qualify for a cash discount.

Select the Earliest Date Below Which Does Not Deserve a Cash