Given a purchases invoice showing 5 items at N40,000 each less trade discount of 25% and cash discount of 10% the amount to be paid within the credit period...

Given a purchases invoice showing 5 items at N40,000 each less trade discount of 25% and cash discount of 10% the amount to be paid within the credit period is

Answer Details

The net price of each item after a trade discount of 25% is 75% of N40,000 = N30,000. So the total cost for 5 items would be N30,000 x 5 = N150,000. Now, there is a cash discount of 10% available if payment is made within the credit period. This means that the amount to be paid within the credit period would be 90% of N150,000. Therefore, the amount to be paid within the credit period would be 90/100 x N150,000 = N135,000. Hence, the answer is N135,000.