The recommended price of an item is $4,560 and the trade discount amount is $684 the net price is

CHAPTER 7 Discounts: Trade and Cash1.Order the steps in calculating the percent increase and decrease.a.Find the difference between amounts.b.Divide the difference by the original amount.2.A discount off of the list price (not related to early payment) is atrade discount3.Manufacturers andwholesalerssell toretailerswho sell to the end-user customer.4.Suggested retail price is theList Price.●Trade discount amount -The dollar value of the trade discount●Trade discount rate -The percent of the trade discount5.To calculate the trade discount amount, multiply thelist price by the tradediscountrate●Trade-A reduction off of the original price (not related to early payment).●Cash - A reduction off of the original price related to early payment.6.Retailerspurchase goods from manufacturers and wholesalers and then sellthese goods to the end-customer.7.Trade Discount amountis the amount that the list price is reduced by.8.The recommended price of an item is $4,560 and the trade discount amount is$684. The net price is:$3,876= $4,560 - $6849.The list price is $4,000 and the trade discount rate is 20%. What is the tradediscount amount? $4,000x20% = $80010.The discountsheetsprovides the seller flexibility in offering trade discounts todifferent retailers.11.Trueor false: Freight costs are added after discounts (if any) have been applied.12.A business document indicating the details of a transaction is a(n) invoice.13.The recommended price of a new Samsung television is $3,200. The price afterdiscount is $2,400. Match each of the amounts and terms.25% Trade discount rate$800 Trade discount amount$2,400 Net price

Fundamentals of Financial Management, Concise Edition

10th EditionEugene F. Brigham, Joel Houston

777 solutions

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,012 solutions

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Accounting

23rd EditionCarl S Warren, James M Reeve, Jonathan E. Duchac

2,210 solutions

What is net price formula?

What is the formula to compute for trade discount?

What is a trade discount quizlet?