The list price of an orange dial Luminox watch is $300. Katz Jewelers receives a trade discount of 35%. Find the trade discount amount and the net price. This question has me kind've mixed up. I know the answer to trade discount is 105.00, and net price is 195.00 but I need help working out how to get to these solutions.
The list price of an orange dial Luminox watch is $300. Katz Jewelers receives a trade discount of 35%. Find the trade discount amount and the net price. This question has me kind've mixed up. I know the answer to trade discount is 105.00, and net price is 195.00 but I need help working out how to get to these solutions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The list price of an orange dial Luminox watch is $300. Katz Jewelers receives a trade discount of 35%. Find the trade discount amount and the net price.
This question has me kind've mixed up. I know the answer to trade discount is 105.00, and net price is 195.00 but I need help working out how to get to these solutions.
Expert Solution
Step 1
Trade discount:
Seller of a product or service offers a reduction in the listed price of the product or service, such reduction is known as trade discount.
Step 2
Computation of trade discount amount.
Compute the net price:
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education