On October 30, Goods with a List Price of $9,500

question 101

Multiple Choice

On October 30, goods with a list price of $9,500 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 Discounts Debit column on November 5 is

• A) $2,375.
• B) $190.
• C) $6,762.
• D) $142.50.
• E) $0.

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Definitions:

Price-discriminating Monopolist

A monopolist that charges different prices to different consumers or groups of consumers for the same product or service, to maximize profit.

Market

A place or mechanism where buyers and sellers of goods and services interact to facilitate exchange, typically resulting in the determination of prices.

Price Elasticity

An indicator of how the demand or supply quantity of a product reacts to price fluctuations.

Raise Profits

Strategies or actions taken by businesses to increase their net earnings or margins.