Tangston Mining was extended credit terms ov 3/15 net 30 EOM. The cost of giving up the cash discount, assuming payment would be made on the last day of the credit period is:
If purchases are made before 25 th of one month,
3/15 net 30 EOM means
3% discount is offered if paid on or ...
Solution describes the steps to find out the cost of giving up a cash discount.