Asked by Robyn Brown on Jul 05, 2024
Verified
Compute the amount of the trade discount and the net price using the discount method.
Trade Discount
A deduction from the list price of goods or services provided by a seller to a buyer, usually based on the volume of transaction or to maintain a strategic partnership.
Net Price
The price that a distributor will charge a customer after any trade discounts have been subtracted from the list price.
Discount Method
A financing or accounting method where interest and other finance charges are subtracted from the loan amount before the borrower receives funds.
- Understand and apply the discount method to compute trade discounts and net prices.
Verified Answer
MB
Learning Objectives
- Understand and apply the discount method to compute trade discounts and net prices.