Discounts/Credit Terms
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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.
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Solution Summary
The solution explains how to calculate the net amount after trade and cash discount.
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 ...
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