Question

à. Abdul sells goods with a list price of $4000 on credit to Omar. Abdul offers the following discounts.
Cash discount 10 % if payment made within 3 days
Tiade discount 20 %
How much should be recorded in sales? Show calculations.
​

Answer 1

Answer:

Explanation:

As regard the amount of sales how much it will be recorded.

Total Sales                      $4000

Less Trade Discount       $ 800

Net Sales                         $3200

Sales will be recorded for $ 3200

If payment is received in time the additional cash discount @ 10% i.e for $320 will be given.

Trade discount is only recorded in book and no entry of trade discount is made