5.2 cash discounts

5.2 cash discounts - 5.2 Cash Discounts • Discount for...

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Unformatted text preview: 5.2 Cash Discounts • Discount for prompt payment • Cash discount is applied after trade discount on invoice NET amount Ordinary Dating: (Example terms: 2/10, n/30 ) • 2% discount if full amount paid within 10 days of invoice date • Net (invoice) amount due 30 days from invoice date • If not paid within 30 days account is overdue and there may be late charges End-of Month Dating (E.O.M.): (Example terms: 2/10, n/30 E.O.M. or 2/10 E.O.M. ) • Invoice date shifts to last day of the month Receipt-of-Goods Dating (R.O.G.) (Example terms: 2/10, n/30 R.O.G. or 2/10 R.O.G. ) • Invoice date shifts to date merchandise is received If there is no “n-term” CASH DISCOUNTS D u e d a t e i s 2 d a y s A F T E R e n d l a s t d i s c o u n t p e r i o d Jan 15/09 Nov 30/08 Invoice for $1,000 dated Nov. 10/08, Goods were received on Jan. 15/09. Ordinary Dating: Terms 2/10, n/30 Invoice End of Due Date 2% Discount Date Invoice End of End of Due Date Month 2% Discount Date Invoice Goods End of Due Date Received 2% Discount Date Receipt-of-Goods Dating (R.O.G.): Terms 2/10, n/30 R.O.G....
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This note was uploaded on 10/04/2011 for the course MATH 1175 taught by Professor Jenny during the Spring '10 term at Fanshawe.

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5.2 cash discounts - 5.2 Cash Discounts • Discount for...

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