A purchase invoice shows 10 items priced at $120 less trade discount 20%. A cash discount of 2%2% isallowed if settlement is made within the allowed credit period. How much will be paid if the cash discountapplies?A $1,170B $1,200C $936D $960

Formula: Amount paid = Invoice amount - discount amount

A purchase invoice shows 10 items priced at $120 less trade discount 20%. A cash discount of 2½% is allowed if settlement is made within the allowed credit period. How much will be paid if the cash discount

A purchase invoice shows 10 items priced at $120 less trade discount 20%. A cash discount of 2½% is allowed if settlement is made within the allowed credit period. How much will be paid if the cash discount

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 14MC: A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays...

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Question

A purchase invoice shows 10 items priced at $120 less trade discount 20%. A cash discount of 2%2% is
allowed if settlement is made within the allowed credit period. How much will be paid if the cash discount
applies?
A $1,170
B $1,200
C $936
D $960

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