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-   -   Having difficulties with n/10 EOM--Can someone explain this to me (https://www.askmehelpdesk.com/showthread.php?t=282409)

  • Nov 18, 2008, 12:31 PM
    pianoqueen69
    Having difficulties with n/10 EOM--Can someone explain this to me
    I have a final assignment due and have several ledgers I have to fill out. At this point I cannot continue as I am seriously stuck on one problem. Any assistance in this would be greatly appreciated. The problem is one but have several along the same lines. If I can understand just one, I should be able to complete the others with no problem.

    The problem:
    May 10 Purchased $4,074 of office equipment on credit from Gear Supply Co. invoice dated May 10, terms n/10 EOM.

    May 19 Issued Check No. 3413 to Garcia, Inc. in payment of its May 10 invoice less the discount.
  • Jan 23, 2009, 07:08 PM
    mslisah

    this means that because the invoice was paid before the end of month, the customer get's a ten percent discount. So you would multiply 4074 by ten percent, subtract that from the purchase made on account, and that is what the check should be written for.

    4074 * .10 = 407.40
    4074-407.40= 3666.60 ( what customer owes)

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