SOLUTION: The following invoice is dated dated August 15. The invoice is paid on August 20. Calculate the total list price of 5125.00. in trade discount, net discount,cash discount and the a

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Question 171293: The following invoice is dated dated August 15. The invoice is paid on August 20. Calculate the total list price of 5125.00. in trade discount, net discount,cash discount and the amount paid. The trade discount offered is 10/5, and the cash terms offered are 2/10, n/30.
Answer by jojo14344(1513) About Me  (Show Source):
You can put this solution on YOUR website!

Since invoice is paid within 5 days: (15Aug-20Aug)
It follows trade discount 10%2F5:
5125-0.10%285125%29
5125-highlight%28512.50%29 ----> highlighted is Trade discount
=$4612.50, Amount paid
For cash discount 2%2F10
0.02%285125%29=$102.50
Thank you,
Jojo