A Craft Shop Buys Stuffed Animals with a List Price

question 150

Multiple Choice

A craft shop buys stuffed animals with a list price of $8,000. If the wholesaler offers trade discounts of 25/25/25, find the net price factor.

• A) 0.45375
• B) 0.21125
• C) 0.78875
• D) 0.42188

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Definitions:

Contributed Capital

Funds raised through the issuance of shares by a corporation to its shareholders.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities.

Journal Entry

A record in the accounting books of a business that represents a single transaction and its impact on the company's finances.

Journal Entry

A recorded transaction in the accounting records of a company, marking the financial events of a business.