Sept/Dec 2015 question 3

Hi,

Question related to reduction in trade account receivable.
Is it correct to deduct the discount from the first section of the answer below and not to deduct in the second ?

1) revised Trade receivable taking discount = ”($28,800,000 – $108000)” * 75% * 30/360 = $1,793,250. ($108000 is the discount)
2) revised Trade receivable not taking discount = ”$28,800,000” * 25% * 51/360 = $1,020,000

Total revised trade receivable = $1,793,250 + $1,020,000 = $2,813,250

Current receivable = $24m * 51/360 = $3,400,000

Reduction in receivable = $3.4m – ($1,793,250 + $1,020,000)
= $586,750
Finance cost = $586,750 * 4%
= $23,470

The examiners answer is $23,200.

Kindly advice