Easy Patterns Fabric Buys Merchandise with a List Price of $9,500

question 32

Multiple Choice

Easy Patterns Fabric buys merchandise with a list price of $9,500. Use the net price, complement method to find the net price if the wholesaler offers trade discounts of 25/10/5. (Round to the nearest penny)

• A) $6,900.35
• B) $5,622.03
• C) $4,700.05
• D) $6,091.88

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Definitions:

Net Allowance

The remaining balance after adjustments are made for discounts, returns, or bad debts to the gross receivables or revenue.

Sales Discounts

A reduction in the price of goods or services sold, offered by the seller as an incentive for early payment or in bulk purchase scenarios.

Sales

The total revenue earned from the selling of goods or services, before any deductions are made.

Charge Customer

To bill a customer for goods or services provided, thereby creating an account receivable.