1 / 27

mathematics of buying

Objective 1. Solve Cash Discount Problems with EOM dating.. End-of-Month Dating. Cash discount methodEnd-of-Month (EOM)proximo. 3/10 EOM. 3/10 prox.. 3% discount on invoice if payment is made by the 10th of the month that follows sale. . Objective 1. End-of-Month Dating 1 of 2. Invoice is dated January 14.Terms are 2/10 EOMFinal Discount date = _____Net Payment date = _____.

paul
Download Presentation

mathematics of buying

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1: Mathematics of Buying Cash Discounts: Other Methods

    3: End-of-Month Dating Cash discount method End-of-Month (EOM) proximo

    4: End-of-Month Dating 1 of 2 Invoice is dated January 14. Terms are 2/10 EOM Final Discount date = _____ Net Payment date = _____

    6: End-of-Month Dating: Summary EOM Dating Final Discount Date is determined by counting from the end of the month of the invoice date. When the invoice is dated on the 26th or later, an extra month is added. The Net Payment Due Date is 20 days after the last discount date.

    7: Proximo Invoice Amt: $356.20 Invoice Date: May 17 Terms: 3/15 prox. Date Invoice is paid: June 12 Amount of Discount = _____ Amount Due = _____

    8: Objective 2 Receipt of Goods Dating

    9: Receipt-of-Goods Method Cash discounts due dates are computed based upon when the goods are received. Used when shipping times are lengthy.

    10: ROG Determine the final discount date for this problem. Invoice Date: Jan. 15 Terms: 3/15 ROG Good Received on: Feb. 5 Final discount date = ________ Net payment due date = ________

    12: ROG Summary Receipt of goods method is used when shipping times are longer. Final discount date is set based upon when the merchandise is received, not the invoice date. Net payment due date is 20 days after the final discount date.

    13: Objective 3 Extra Dating Method

    14: Extra Dating Method Extends the discount period. Used as an incentive during a slow sales season. Used to gain a competitive sales advantage.

    15: Extra Dating 1 of 2 Invoice Date: Nov 22 Terms: 1/10-20 x Final Discount Date = ________ Net Payment Date = ________

    17: Objective 4 Determine credit given for partial payment of an invoice.

    18: Partial Payments Customers sometimes only pay a portion of what is owed. If the partial payment is made within the discount period, they are entitled to a discount on the portion of the invoice that is paid.

    19: Partial Payments Analysis of a Partial Payment:

    22: Partial Payments 3 of 3 Problem #23, page 251 Mail Boxes Etc. receives an invoice amounting to $672.30 with terms of 8/10, net 30 and dated AS OF September 1. If a partial payment of $450 is made on Sept. 8, find (a) the credit given for the partial payment and (b) the balance due on the invoice.

    25: Partial Payments Extra Practice Problem #24, page 251 Yogurt for You receives an invoice amounting to $263.40 with terms of 2/20 EOM and dated September 6. If a partial payment of $150 is made on October 14, find (a) the credit given for the partial payment and (b) the balance due on the invoice.

More Related