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...

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.