bought goods on credit from Tom with a list price of 2000, less 10% trade discount
To calculate the price at which you bought the goods with the trade discount, follow these steps:
Step 1: Start with the list price of the goods, which is $2000.
Step 2: Determine the trade discount rate, which is 10%. This means you can subtract 10% from the list price.
Step 3: Calculate the trade discount amount by multiplying the list price by the trade discount rate (10% or 0.1). In this case, it's $2000 x 0.1 = $200.
Step 4: Subtract the trade discount amount from the list price to find the discounted price. $2000 - $200 = $1800.
Therefore, you bought the goods from Tom for $1800 after a 10% trade discount.