Cody’s Book Nook received an invoice dated July 27 for $1283 with terms of 4/5 EOM. If the invoice is paid on August 3, find the amount necessary to pay the invoice in full.

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Cody’s Book Nook received an invoice dated July 27 for $1283 with terms of 4/5 EOM. If the invoice is paid on August 3, find the amount necessary to pay the invoice in full.

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Answer: amount necessary to pay the invoice in full is $ 1231.68

Working notes for the above answer is as under

We have been provided that ,

Cody’s Book Nook received an invoice dated July 27 for $1283 with terms of 4/5 EOM

Using “4/5 EOM” (the invoice is due and payable 5 days after the end of the month in which the sale occurred).

Here bill is paid within the discount date so cloudy is able to get discount

She wil get 4% discount as follow

Particular Amount in $
Invoice Amount 1283
Less:
Discount Rate
4% of 1283
51.32
amount necessary to pay the invoice in full 1231.68
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