Cash Discounts: Other Methods
Solve Cash Discount Problems with EOM dating.
Objective 1
End-of-Month Dating
 Cash discount method
 End-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.
End-of-Month Dating
1 of 2
 Invoice is dated January 14.
 Terms are 2/10 EOM
Feb. 10
 Final Discount date = _______
Mar. 2
 Net Payment date = _______
Jan. 14 Jan. 31 Feb. 10
Feb. 28Mar 2
10
20
18
2
Practice
 Ch 6, Section 4
 Page 263
 #4
 *Ch 6 Test
 Page 271
 #5, 7
End-of-Month Dating


2 of 2
If invoice is dated the 26th or
later an extra month is added.
Then count-off the 15 days…
Invoice is dated April 26.
Terms are 3/15 EOM
June 15
 Final Discount date = _______
July 5
 Net Payment date = ________
Apr 26
Apr 30
May 31 June 15
June 30July 5
15
20
15
5
Objective 1
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.
Proximo
 Invoice Amt: $356.20
 Invoice Date: May 17
 Terms: 3/15 prox.
 Date Invoice is paid: June 12
June 15
 Amount of Discount = ________
 Net due date = ________
July 5
$356.20 x .97 =$345.51
 Amount Due (if disc. earned) = ________
May 17 May 31 June 15
June 30 July 5
15
20
15
5
Receipt of Goods Dating
ROG
 Determine the final discount date for this problem.
 Invoice Date: Jan. 15
 Terms: 3/15 ROG
 Good Received on: Feb. 5
Feb. 20
 Final discount date = ________
 Net payment due date = ________
Mar. 12
Feb 20
Feb 28
Feb 5
Mar 12
15
20
8
12
ROG





Invoice Amt: $682.28
Invoice Date: June 4
Terms: 3/20 ROG
Delivery Date: July 25
Date Invoice is paid: August 10
x 2% = $13.65
 Amount of Discount = $682.28
__________________
$682.28 - $13.65 = $668.63
 Amount Due = _______________________
 Extra: Net Payment Due Date = _____________
Sept. 3
July 25
July 31
Aug 14
Aug 31 Sept. 3
20
6
14
20
17
3
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.
Practice
 Ch 6, Section 4
 page 263
 #6
 Ch 6 Test
 page 271
 #6
Extra Dating Method
Objective 3
Extra Dating Method
 Extends the discount period.
 Used as an incentive during a slow sales season.
 Used to gain a competitive sales advantage.
2/10-50 extra
2/10-50 ex.
2/10-50 x
Extra Dating
1 of 2
 Invoice Date: Nov 22
 Terms: 1/10-20 x
Dec. 22
 Final Discount Date = ________
Jan. 11
 Net Payment Date = ________
Nov 22
Dec 2*
Nov 30
Dec 22 Dec 31
Jan 11
10
8
2
20
20
9
11
Jan 31
Extra Dating 2 of 2


Invoice Date: April 12
Terms: 3/15-50 ex.
June 16
Discount Date = ________
July 6
 Net Payment Date = ________
 Final
Apr 27*
Apr 30
Apr 12
15
July 6
June 30
June 16
May 31
50
3
31
16
20
14
6
Practice
 Ch 6, Section 4
 page 263
 #3, 5
 Ch 6 Test
 page 271
 #8
Practice
 Ch 6, Section 4
 Determine discount and amount due
 Page 263
 #9 – 13
 Application Problems
 Pages 264 – 265
 #18 – 20, 25, 26