Questions: Using the EOM, ROG, and Extra dating methods, calculate the discount date and the net date for the transaction. Unless otherwise specified, the net date is 20 days after the discount date.

Using the EOM, ROG, and Extra dating methods, calculate the discount date and the net date for the transaction. Unless otherwise specified, the net date is 20 days after the discount date.

Transcript text: Using the EOM, ROG, and Extra dating methods, calculate the discount date and the net date for the transaction. Unless otherwise specified, the net date is 20 days after the discount date.

Solution

Solution Steps

To solve this problem, we need to calculate the discount date and the net date using the EOM (End of Month) dating method. The terms "3/15, EOM" mean that a 3% discount is available if the invoice is paid within 15 days after the end of the month in which the invoice is dated. The net date is 20 days after the discount date.

Discount Date Calculation: Since the invoice date is September 29 and the terms are EOM, the discount period starts at the end of September. Therefore, the discount date is 15 days after September 30, which is October 15.
Net Date Calculation: The net date is 20 days after the discount date. Therefore, the net date is 20 days after October 15, which is November 4.

Step 1: Determine the End of the Month

The invoice date is \( \text{September 29, 2023} \). The end of September is calculated as: \[ \text{End of Month} = \text{September 30, 2023} \]

Step 2: Calculate the Discount Date

The discount date is 15 days after the end of September: \[ \text{Discount Date} = \text{End of Month} + 15 \text{ days} = \text{September 30, 2023} + 15 = \text{October 15, 2023} \]

Step 3: Calculate the Net Date

The net date is 20 days after the discount date: \[ \text{Net Date} = \text{Discount Date} + 20 \text{ days} = \text{October 15, 2023} + 20 = \text{November 4, 2023} \]