On June 1, 2004, Noll Corp. sold merchandise with a list price of $30,000 to Linn on account. Noll allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40 and the sale was made f.o.b. shipping point. Noll prepaid $600 of delivery costs for Linn as an accommodation. On June 12, 2004, Noll received from Linn a remittance in full payment amounting to
The trade discounts are 30% and 20%. The first discount is on the list price and the second discount is on the first discounted price. The first discounted ...
The solution explains how to calculate the net amount after trade and cash discount.