Which of the following is correct concerning terms of trade credit of 4/10, EOM, net 90?
A)The discount period expires on the last day of the month.
B)The invoice becomes delinquent 90 days after the last day of the month.
C)The discount period ends on the tenth day of the month following the invoice.
D)The discount period ends either 10 days after invoicing or at the end of the month, whichever is earlier.

Question

Quizplus · Accepted Answer

The terms "4/10, EOM, net 90" mean that a 4% discount is available if the invoice is paid within 10 days after the end of the month in which the invoice was issued, and the full (net) amount is due 90 days after the invoice date. Therefore, the discount period ends on the tenth day of the month following the invoice.

Which of the Following Is Correct Concerning Terms of Trade