Sally received an invoice dated on 15 February 2020 worth RM4,050 of goods that included a prepaid freight cost of RM50. The invoice was offered trade discounts of 10% and 5% with cash discount terms of 9/15, 4/25, n/45. a) i. State the last date to settle the invoice. ii. Calculate the single equivalent trade discount. ii. Determine the trade discount offered.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sally received an invoice dated on 15 February 2020 worth RM4,050 of
goods that included a prepaid freight cost of RM50. The invoice was offered
trade discounts of 10% and 5% with cash discount terms of 9/15, 4/25, n/45.
a)
i.
State the last date to settle the invoice.
ii.
Calculate the single equivalent trade discount.
iii.
Determine the trade discount offered.
iv.
Calculate the maximum cash discount offered.
V.
Assume that Sally paid RM1100 on 2 March 2020 and the balance on 30
March 2020, determine the balance that was paid.
Transcribed Image Text:Sally received an invoice dated on 15 February 2020 worth RM4,050 of goods that included a prepaid freight cost of RM50. The invoice was offered trade discounts of 10% and 5% with cash discount terms of 9/15, 4/25, n/45. a) i. State the last date to settle the invoice. ii. Calculate the single equivalent trade discount. iii. Determine the trade discount offered. iv. Calculate the maximum cash discount offered. V. Assume that Sally paid RM1100 on 2 March 2020 and the balance on 30 March 2020, determine the balance that was paid.
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