On the 30 January 2020, a retailer received an invoice worth RM17 500 including transportation cost of RM200 and insurance of RM150. He received trade discounts of 13% and 8% and the cash discount terms of 5/12, 3/16, n/45. i) Calculate the single discount equivalent rate to the trade discounts given. ii) Find the last date to get 3% cash discount. iii) Find the total payment if the retailer paid on 22 February 2020.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QUESTION 3
On the 30 January 2020, a retailer received an invoice worth RM17 500 including transportation
cost of RM200 and insurance of RM150. He received trade discounts of 13% and 8% and the
cash discount terms of 5/12, 3/16, n/45.
i) Calculate the single discount equivalent rate to the trade discounts given.
ii) Find the last date to get 3% cash discount.
Find the total payment if the retailer paid on 22 February 2020.
Transcribed Image Text:QUESTION 3 On the 30 January 2020, a retailer received an invoice worth RM17 500 including transportation cost of RM200 and insurance of RM150. He received trade discounts of 13% and 8% and the cash discount terms of 5/12, 3/16, n/45. i) Calculate the single discount equivalent rate to the trade discounts given. ii) Find the last date to get 3% cash discount. Find the total payment if the retailer paid on 22 February 2020.
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