Ordinary Dating Terms
Dating Terminology
 Invoice

Discount Incentive

Who uses ordinary dating?
2/10, net 30
2/10, n/30
 What does this all mean?
Review of Formulas from Discount Lesson


Example:
 Terms are 3/10, n/30. Net Price is $640.
o What is the discount rate in this problem?
o What is the paid percent of 3%
o What is the cash price?
ROG:
What does this mean?
Example
 The net price of goods from fashion footwear, to the Mall Shoe Store is $4217.86. If the Invoice is paid
on December 11th, what is the cash price?
 On the Invoice you may find the following information.
o Invoice Date: 12/05/09
What is the Discount Rate:
o Received Date: 12/05/09
Last Day for the Discount:
o Terms: 8/10, n/30
Did they make discount period?
What is the cash price?
EOM Dating Terms
What does this mean?
Example
 Bob’s Drugstore received an invoice from General Wholesalers. What is the last day that Bob’s can
take advantage of the 4% discount? What is the case price?
o Date: July 12
Terms: 4/10, EOM
What is the Discount Rate:
o Total on Invoice: $727.05
Last Day for the Discount:
o Invoice was paid on August 5th
Did they make discount period?
What is the cash price?
Putting it all together…
Date: October 10, 2009
McKee Foods Corporation
Invoice Number: 6515280
Corner Junction
Terms: 4/10, n/30
Sold By: Independent Distributor
Qty
Description
Net Cost
24
24
12
36
24
12
24
Chewy Choc Chip
Chewy Oats & Honey
Star Crunch
Oatmeal Pies
Cherry Pie
Choc Chop Cookie
Cosmic Brownie
Total Store Cost
4.44
4.44
2.22
6.66
8.04
3.90
4.44
$
34.14
What is the discount percent?
When is the last day they are able to take advantage of the discount?
What is the net price, when paid on October 15, 2009?
Date: August 10, 2009
Augusta Sportswear
Invoice Number: 1171980
Corner Junction
Terms: 5/10, EOM
Sold By:
Qty
Description
Net Cost
5
1
2
7
Micro poly pant lined
Micro poly pant lined
Micro poly pant lined
Micro poly full zip jacket
Total Store Cost
77.50
16.70
31.00
118.65
$
243.85
What is the discount percent?
When is the last day they are able to take advantage of the discount?
What is the net price, when paid on September 9, 2009?
Becca