Explore BrainMass

Explore BrainMass

    Discounts/Credit Terms

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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
    a. $16,464.
    b. $17,052.
    c. $17,064.
    d. $16,794.

    © BrainMass Inc. brainmass.com March 4, 2021, 7:57 pm ad1c9bdddf

    Solution Preview

    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 ...

    Solution Summary

    The solution explains how to calculate the net amount after trade and cash discount.