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list price $200
trade discount@10%
cash discount@5% if paid within 15 days.
sales tax@15%
what is the amount of sales tax and gross payable?my calculation is:
price =200
TD@10% =(20)
CD@5% =(9)
net amount=171
so, sales tax=171×15%=$25.65
I am clear so far..(sales tax is always calculated after all discount)
but my confusion is about gross amount.
is it $180+$26.65=$206.65 OR,
$171+$26.65=$197.65
plz sir help me n explain if needed..The gross amount is 206.65.
If the customer does not pay within 15 days then they will pay the full 206.65.
If they do pay within 15 days then they will only pay 197.65 and the remaining 9 goes to the discount allowed account.
ok..on the time of sale gross amount is 206.65 am I right sir?rest depent on the payment period.
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