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.
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Jim sell goods on credit to John.John receive a 10% trade discount from Jim and a further 5% settlement discount if goods are paid within 14days. John bought goods with a list price $480,000 from Jim. Sales tax is at 17.5%.
what amount should be included in jim receivable ledger for this transactions.
A)$564000
:)$507,000C)$482,220
D)$503,820$480,000
trade discount 10%*480,000=48,000
total $432,000
5% settlement discount 5%*432,000=21600total-410,400*17.5=71820
410,400+71820=482,220
which part i calculation wrong?
The answer is D
480 000* 10%= 48000
total 432 000
432 000 * 5%=21600
total 410400
but this is only for tax because their is not said if settlement was used or not so…
410400 * 17,5% =71820and you must add this to 432 000
so
432000 + 71820=503820
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