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1. Chapter 7 Compute the amount of the trade discount and the net price using the discount met List Price $845 Trade Discount 15% Discount Amount a. Discount Amount: $126.75; Net Price: $718.25 b. Discount Amount: $128.10; Net Price: $716.90 c. Discount Amount: $215.30; Net Price: $629.70 H. Discount Amount: $126.57: Net Price: $718.43 Net Price

1. Chapter 7 Compute the amount of the trade discount and the net price using the discount met List Price $845 Trade Discount 15% Discount Amount a. Discount Amount: $126.75; Net Price: $718.25 b. Discount Amount: $128.10; Net Price: $716.90 c. Discount Amount: $215.30; Net Price: $629.70 H. Discount Amount: $126.57: Net Price: $718.43 Net Price

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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# Chapter 7 Homework 1. Compute the amount of the trade discount and the net price using the discount method. **List Price:** $845 **Trade Discount:** 15% **Discount Amount** | **Net Price** --- | --- a. $126.75 | $718.25 b. $128.10 | $716.90 c. $215.30 | $629.70 d. $126.57 | $718.43
Transcribed Image Text:# Chapter 7 Homework 1. Compute the amount of the trade discount and the net price using the discount method. **List Price:** $845 **Trade Discount:** 15% **Discount Amount** | **Net Price** --- | --- a. $126.75 | $718.25 b. $128.10 | $716.90 c. $215.30 | $629.70 d. $126.57 | $718.43
Expert Solution
Step 1: Understanding of discount method

Lets understand the basics.

In discount method, discount gets calculated on the list price. 

For calculating discount amount and net price, we need to use below formula.

Discount amount = List price * Trade discount rate

Net price = List price - Discount amount 

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