Answer the following questions in full. 1 . Explain the difference between a trade discount and a
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Answer the following questions in full.
Explain the difference between a trade discount and a cash discount.
Give a mathematical example of a trade discount, whereby the original price is $ and it is discounted by if you buy units. How much will you pay for the units? What is the average price for unit?
Give a mathematical example of a double trade discount, whereby the original price is $ and it is discounted by if you pay units, and then it is discounted and additional if you buy units. This requires two calculations
a How much will you buy units?
b What is the average price for unit under the first scenario?
c How much will you pay for the units?
d What is the average price for unit?
One example of a Cash Discounts is to receive a discount off of the net price of merchandise if one pays within days n Based on this scenario, a merchant offers you n on a $ purchase made on
a If you pay your bill on how much will you owe?
b If you pay your bill on how much will you owe?
c Give a brief explanation in the savings and how this is a good opportunity for both the buyer and the seller?
You are a purchasing agent at ABC Inc. You recently made a discounted purchase of $ on a $ item.
d Calculate the percentage discount you received on this purchase.
e Also, show the formula used in your calculation.
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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