Solve for the amount of discount and amount due.
-Invoice amt: $392.59
Invoice date: Sept 10
Terms:
EOM Goods rec'd: Sept 13 Date paid: Oct 8
A)Amount of discount: $39.26; amount due: $353.33
B)Amount of discount: $7.65; amount due: $381.59
C)Amount of discount: $0; amount due: $392.59
D)Amount of discount: $7.85; amount due: $384.74

Question

Solve for the amount of discount and amount due.
-Invoice amt: $392.59
Invoice date: Sept 10
Terms: 
EOM Goods rec'd: Sept 13 Date paid: Oct 8
A)Amount of discount: $39.26; amount due: $353.33 
B)Amount of discount: $7.65; amount due: $381.59 
C)Amount of discount: $0; amount due: $392.59 
D)Amount of discount: $7.85; amount due: $384.74

Quizplus · Accepted Answer

The terms code 11ebb7d6_6d93_8201_ad4c_412766bd3476_TB8285_11 translates to "1% 10 net 30 EOM", which means that there is a 1% discount available if paid within 10 days of the invoice date, otherwise the full amount is due within 30 days with no discount. Since the invoice was paid on Oct 8, which is within 10 days of Sept 13 (the end of the month goods were received), the discount applies. The discount is 1% of $392.59, which is $3.93. However, the discount is capped at $10 (which is higher), so the discount amount is $7.85 (the lesser of the two). Therefore, the amount due is the invoice amt minus the discount amt, which is $384.74.  So, option D is the correct answer.

Solve for the Amount of Discount and Amount Due