Use the following information to answer the given question: \(\begin{array}{c|c} \text{Date of delivery} & customer & \text{Gross amount N} & \text{Trade di...

Answer Details

The gross amount of the transaction is N12,000, and the trade discount is 15%. This means that the customer, Mr. A.F.P., is entitled to a discount of N1,800 (15% of N12,000). The terms of payment state that Mr. A.F.P. has 30 days to settle his account, and if he does so, he will also receive a cash discount of 10%. This means that he will receive a discount of N1,200 (10% of N12,000). Therefore, if Mr. A.F.P. settled his account after 30 days of delivery, he would receive a total discount of N3,000 (N1,800 + N1,200). This is, N10,800. In summary, Mr. A.F.P. would receive a trade discount of N1,800 and a cash discount of N1,200, totaling a discount of N3,000 if he settles his account after 30 days of delivery.