Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 164

Find the final discount date and the net payment date for the following. (See Examples.)
Finding Cash Discount Dates
A Hershey invoice is dated January 2 and offers terms of 2/10, net 30. Find (a) the last date on which the 2% discount may be taken and (b) the net payment date.
SOLUTION
(a) Beginning with the invoice date, January 2, the last date for taking the discount is January 12 (2 + 10).(b) The net payment date is February 1 (31 ? 2 = 29 days remaining in January plus 1 day in February.)
Using Postdating AS OF with Invoices
An invoice for a shipment of Henkels cutlery from Germany is dated October 21 AS OF November 1 with terms of 3/15, n/30. Find (a) the last date on which the cash discount may be taken and (b) the net payment date.
SOLUTION
(a) Beginning with the postdate (AS OF) of November 1, the last date for taking the discount is November 16 (1 + 15).(b) The net payment date is December 1 (29 days remaining in November and 1 day in December).