Homework Help is Here – Start Your Trial Now!
Business
Accounting
iv) If the payment was made on 1 May 2021, find the total payment.

iv) If the payment was made on 1 May 2021, find the total payment.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Answer only question 2 (iv)

Requirement (ii) Trade discount is that discount, which is given to all the customers on the list price of the products. Single Equivalent trade discount rate calculation is shown below: = (1 – 15%) × (1 – 10%) × (1 – 5%) = 72. 68% So, single equivalent trade discount rate is 72. 68% Requirement (ii) Amount of Trade Discount = Price of goods * Sin, discount rate RM 8750 * 72. 68% = RM 6359. 5 So, amount of trade discount is RM 6359. 5
Transcribed Image Text:Requirement (ii) Trade discount is that discount, which is given to all the customers on the list price of the products. Single Equivalent trade discount rate calculation is shown below: = (1 – 15%) × (1 – 10%) × (1 – 5%) = 72. 68% So, single equivalent trade discount rate is 72. 68% Requirement (ii) Amount of Trade Discount = Price of goods * Sin, discount rate RM 8750 * 72. 68% = RM 6359. 5 So, amount of trade discount is RM 6359. 5
QUESTION 2 Neena bought a few electrical appliances at RM8750. She was given trade discounts 15%, 10% and 5% and cash discount terms of 6/5, 4/15, n/30. The invoice date was 18 April 2021 and delivery charges were RM220. i) Explain the cash discount terms of 6/5, 4/15, n/30. ii) Calculate the single discount equivalent rate to the above trade discounts. iii) Find the amount of trade discount. iv) If the payment was made on 1 May 2021, find the total payment.
Transcribed Image Text:QUESTION 2 Neena bought a few electrical appliances at RM8750. She was given trade discounts 15%, 10% and 5% and cash discount terms of 6/5, 4/15, n/30. The invoice date was 18 April 2021 and delivery charges were RM220. i) Explain the cash discount terms of 6/5, 4/15, n/30. ii) Calculate the single discount equivalent rate to the above trade discounts. iii) Find the amount of trade discount. iv) If the payment was made on 1 May 2021, find the total payment.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS