3/10 net 45 EOM translates as ________.
A) a 10 percent cash discount may be taken if paid in three days; if no cash discount is taken, the balance is due in 45 days
B) a 3 percent cash discount may be taken if paid in 10 days; if no cash discount is taken, the balance is due 45 days after transaction is complete
C) a 3 percent cash discount may be taken if paid in 10 days; if no cash discount is taken, the balance is due 45 days after the end of the month
D) a 3 percent discount may be taken on 10 percent of the purchase if the account is paid within 45 days after the end of the month

Question

Quizplus · Accepted Answer

3/10 net 45 EOM means that a 3% cash discount can be taken if payment is made within 10 days from the invoice date, but if no cash discount is taken, then the full payment is due within 45 days (net 45). The EOM refers to the end of the month, meaning that the payment is due 45 days from the end of the month in which the invoice was issued.

3/10 Net 45 EOM Translates as ________