The receipt of cash from a customer who bought goods with ₦800 list price, 25% trade discount and 2/10, n/30 terms would, if paid within the discount period...

The receipt of cash from a customer who bought goods with ₦800 list price, 25% trade discount and 2/10, n/30 terms would, if paid within the discount period, amount to

Answer Details

The trade discount is given to the customer for purchasing the goods. In this case, the trade discount is 25%, which means the customer will only pay 75% of the list price. Therefore, the customer will pay 75/100 x ₦800 = ₦600 for the goods. The terms 2/10, n/30 mean that if the customer pays within 10 days, they will receive a 2% discount. The net amount due within 30 days, without the discount, is ₦600. If the customer pays within the discount period, they will pay 98% of ₦600, which is equal to 0.98 x ₦600 = ₦588. Therefore, the correct answer is ₦588.