A customer paid $\$ 15600$ to a supplier after receiving a $2 \frac{1}{2} \%$ cash discount and a trade discount of $20 \%$. What was the amount of the invoice entered in the purchases journal?

Explanation

The correct option is A because the customer paid $15600 after receiving a 2 1/2% cash discount and a 20% trade discount. To find the amount of the invoice, we need to calculate the amount before the discounts. Let's assume the invoice amount is x. After a 20% trade discount, the amount becomes 0.8x. After a 2 1/2% cash discount, the amount becomes 0.975x. We know that 0.975x = 15600. Solving for x, we get x = 16000.

A customer paid $\$ 15600$ to a supplier after receiving a $2 \frac{1}{2} \%$ cash discount and a trade discount of $20 \%$. What was the amount of the invoice entered in the purchases journal?

Explanation

⬆ Related Topic

📘 Syllabus

📝 Practice Questions

🤖 Practice with AI

📚 Related Concepts