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Avalon gives his customer individual trade discounts from the list price and general 5% settlement discount for all invoices settled within seven days of issue.Nolova,a new customer,negotiates a 25% trade discount.He is not expected to take advantage of the settlement discount offered.
Nolova’s transactions during June are;
1.12 June Buys goods with $5000 list price
2.15 June Returns goods with a $1000 list as faulty
3.16 June Pays half of the net balance on his acccount
How much does Nolova owe Avalon at the end of June
SIR PLEASE GIVE ME ANSWER TO THIS QUESTION AND EXPLAIN TO ME
Ignore the trade discount. It is simply used to set the selling price and invoice amount.
After the goods are returned 4,000 is owed. Half is paid, so 2000 remains outstanding.
No settlement discount is usually given unless amounts are paid in full.