Calculate the Trade Discount Amount of Goods with a List $$40 \frac { 1 } { 2 } / 20 \frac { 1 } { 4 } / 5$$

question 76

Multiple Choice

Calculate the trade discount amount of goods with a list price of $29,000 less trade discounts of $$40 \frac { 1 } { 2 } / 20 \frac { 1 } { 4 } / 5$$ .

• A) $7,752.25
• B) $2,280.10
• C) $13,072.82
• D) $15,927.18

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Definitions:

Merchandise

Products that are purchased and traded during business operations, usually in a retail or wholesale environment.

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Net Method

An accounting technique used for recording purchases where the purchase is recorded net of any trade discounts offered by the supplier.

Returned Merchandise

Items that customers bring back to the seller after purchase due to defects, dissatisfaction, or other reasons, often leading to refunds or exchanges.