A retail merchandise trader purchased 400 Galaxy mobile phone @ RO 70 each from a Wholesale merchandise trader on 5th February 2020 under the credit terms of 5/20, n/60. The supplier offers a trade discount of 10% on amounts in excess of RO 8,000. (the trade discount will not be applicable for the first RO 8,000). Assuming that the retail merchandise trader paid full cash on 28th February 2020. The amount of cash paid by the retail merchandise trader to the wholesale merchandise trader was? a. 24,700 b. 18,000 c. 26,000 d. 17,100
A retail merchandise trader purchased 400 Galaxy mobile phone @ RO 70 each from a Wholesale merchandise trader on 5th February 2020 under the credit terms of 5/20, n/60. The supplier offers a trade discount of 10% on amounts in excess of RO 8,000. (the trade discount will not be applicable for the first RO 8,000). Assuming that the retail merchandise trader paid full cash on 28th February 2020. The amount of cash paid by the retail merchandise trader to the wholesale merchandise trader was? a. 24,700 b. 18,000 c. 26,000 d. 17,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A retail merchandise trader purchased 400 Galaxy mobile phone @ RO 70 each from a Wholesale merchandise trader on 5th February 2020 under the credit terms of 5/20, n/60. The supplier offers a trade discount of 10% on amounts in excess of RO 8,000. (the trade discount will not be applicable for the first RO 8,000). Assuming that the retail merchandise trader paid full cash on 28th February 2020. The amount of cash paid by the retail merchandise trader to the wholesale merchandise trader was?
a.
24,700
b.
18,000
c.
26,000
d.
17,100
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