Cash Discounts ~ Other Dating
Methods
End of Month Dating

End of Month = EOM = Proximo = Prox.
 i.e…
3/10 EOM and 3/10 prox
 Both mean that 3% may be taken
as cash discount if the payment is
made by the 10th day of the
following month. (10 days from the
end of the month!)
Exception to EOM

If the date is the 26th or later in the
month, add another month on!

For example: Dated March 28 with
terms 3/10 EOM means the 3%
discount is good until MAY 10th.
 An
invoice from Pearson Eduation,
Inc. is dated Feb 15 with terms of
2/10 EOM. Find (A) the final date
on which the discount may be
taken and (B) the net payment date.
 An invoice for some gourmet
cookbooks is for $1475 and Oct 17.
Find the amount due if the invoice
terms are 3/20 proximo and the
invoice is paid on Nov 18.
Receipt-of-Goods dating
Receipt-of-Goods = ROG
 Offers cash discounts determined from
the date the goods were actually
received, not the invoice date.

i.e., 3/15 ROG
 means 3% discount if paid within 15 days
from the receipt of goods.


An invoice from Silver Specialties is
dated June 4, with terms 4/15 ROG.
The merchandise was received on
July 25. Find (A) the final day on
which the cash discount may be
taken and (B) the net payment date.

Find the amount due on an invoice of
$896, with terms of 4/20 ROG, if the
invoice is dated Mach 10, the goods
are received on April 28, and the
invoice is paid on May 15
Extra Dating…

Gives the buyer additional time to
take advantage of discount
20/10 – 50 extra or 20/10-50ex or
20/10-50x
 Means: 2% discount is good for
10 + 50 = 60 days


An invoice id dated July 7 with terms
of 1/10-60ex. Find (A) the final date
on which the cash discount may be
taken and (B) the net payment date.

An invoice for $5412 is dated May 22
and offers terms of 2/41-40x. If the
invoice is paid on July 15, what is the
amount of payment due?
Credit given for partial payment
If a portion of the payment is paid
within the discount period, the
customer receives a discount on the
partial payment. (Use B = P ÷ R)
 An invoice for $1082 is dated Sept 14
and offers terms of 2/20 prox. A
partial payment of $590 is paid Oct
15. Find (A) the amount credited for
the partial payment, (B) the balance
due, and (C) the cash discount
earned.
