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...
Question 1 Report
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.
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning