On October 30, Goods with a List Price of $10,500

question 104

Multiple Choice

On October 30, goods with a list price of $10,500 are sold, subject to a trade discount of 25 percent with terms of 2/10, n/30. Payment is received from the customer on November 5. The amount recorded in the Sales Credit column on October 30 is

• A) $10,500.
• B) $10,290.
• C) $7,875.
• D) $7,717.50.
• E) $2,625.

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Definitions:

Entry Restrictions

Regulations or barriers that prevent new competitors from entering an industry or market, often to protect existing businesses and control market dynamics.

Revenue Function

A mathematical representation that calculates the total revenue generated by selling goods or services at different prices.

Total Profits

The overall financial gain made by a business, calculated as the total revenue minus total expenses.

Utility Function

A representation or model that quantifies an individual's preferences for various outcomes or bundles of goods and services, used in economics to analyze behavior.