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Respected Sir,
In question two of the Test provided at the end of the Sales Tax chapter the calculation I did was:-
List Price- 480000
Trade Discount- (48000)
________
432000
Cash Discount- (21600)
_______
410400
Sales Tax- 71800
________
Final Answer- 482220Sir, I feel that the answer should be 482220.
Have you looked at the answer at the end of the Lecture Notes? The correct answer is 503820.
The sales tax is 17.5% x 410400 = 71820.
The amount recorded as owing by the customer is 432000 + 71820 = 503820.
(The only get the cash discount if they pay early. Until they pay, the amount recorded is before the cash discount (but the sales tax is calculated as above whether or not they take the cash discount).
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