A manufacturer of womens blouses quoted terms of 3/10, n/30, EOM and grants trade discounts to in the amounts of 15 percent, 10 percent, and 4 percent. The list price of the blouses is $400 per dozen. A retailer receives an invoice dated October 29 for nine dozens of these blouses. The invoice is paid December 2. What is the net cost to the retailer per blouse?

Invoice amount = $400/doz x 9 = $3,600 Dated: October 28th Arrives: November 11th Paid: December 2nd

Terms:

Three trade discounts that must be taken first before decision is made whether or not eligible for cash discount.15/10/4

3% cash discount if paid in 10 days, otherwise full amount of invoice is due in 30 days.

EOM dating allows the discount period to begin at the end of the month instead of the date on the invoice. In this case we have a special dating issue, since the invoice is dated on October 28th that is, the discount period starts on December1st instead of November 1st. Invoice is paid on December 2nd so they are eligible for the cash discount.