A Company received an invoice for $1618 dated May 11, terms 2/15 EOM.

• What is the last date of the discount period and last date of credit period?

• If invoice is paid on June 12, how much would the company pay? (Round your answers to the nearest hundredth)

Term 2/15 EOM means that if payment is made within 15 days of invoice, a discount rate of 2% applies, or payment must be made by the 15th day after the month of invoice.

A) The last day of the discount is May 26th. 15 days after the date of invoice (may 11 + 15 days)

The last date of credit period June 15 (15 days after the end of the month of invoice)

B) If the invoice is paid on June 12, $1618 will be paid.